Excellon Resources has entered into a definitive agreement to acquire the permitted, past-producing La Negra Mine in Mexico from Dalu S. à r.l. for an aggregate consideration of up to US$50 million.
Located in the state of Querétaro, La Negra has a historical production averaging 3.0 million silver-equivalent ounces annually. The mine was placed on care-and-maintenance in March 2020 due to the COVID-19 shutdown.
“Excellon has a long history of operational excellence in Mexico. The acquisition of La Negra will be transformational for Excellon, with the goal of returning the company to producer status on an accelerated timeline,” said Shawn Howarth, president and CEO.
“La Negra stands out as a permitted, near-term restart opportunity capable of generating significant value. Our strategy is to restart the mine following a 12-18 month de-risking process that we believe will position the company for operational readiness by early 2024.”
A preliminary economic assessment was completed last year that concluded there was adequate detail and information to support a positive economic outcome and recommended restart of La Negra, particularly as this is a brownfields site with existing infrastructure, equipment, development, operating permits and labor force.
Source: Excellon Resources