Excellon Resources declares force majeure at La Platosa
Toronto Stock Exchange – EXN
TORONTO, Aug. 8, 2012 /PRNewswire/ - Excellon Resources Inc. (TSX: EXN) (“Excellon” or “the Company”) today announced that it has declared force majeure in respect of its concentrate delivery contracts with Consorcio Minero
De Mexico Cormin Mex, S.A. DE C.V. (“Trafigura”), located in
Manzanillo, Mexico, due to the ongoing illegal blockade at the
Company’s La Platosa mine in the state of Durango, Mexico. The
blockade was commenced by the Ejido de La Sierrita (the “Ejido”) on
July 8, 2012, with the assistance and funding of the non-governmental
organization ProDESC and Sindicato Nacional de Trabajadores Mineros
Metalúrgicos, Siderúrgicos y Similares de la República Mexicana,
affiliated with the United Steelworkers Union of Canada.
Criminal charges for trespassing were laid more than four weeks ago,
immediately following the commencement of the blockade. On the evening
of Monday, August 6, 2012 the Company notified the Mexican federal
government that it would be imminently required to declare force majeure unless the illegal blockade was removed. Despite that notice and the
evident urgency of the situation, no actions were taken by authorities
to prosecute the outstanding criminal charges and uphold the law.
The Company continues to meet regularly with local, state and federal
governments in Mexico in an effort to resolve the situation. La Platosa
remains under care and maintenance during the illegal action.
About Excellon
Excellon, a mineral resource company operating in Durango and Zacatecas
States, Mexico, and Ontario and Quebec, Canada, is committed to
building value through production, expansion and discovery.
Excellon is Mexico’s highest-grade silver producer; it produces silver,
lead and zinc from the high-grade manto Mineral Resource on its large,
100% owned Platosa Property, strategically located in the middle of the
Mexican CRD/silver belt. Excellon’s focus is on expanding its operating
capacity and increasing its Mineral Resources at Platosa where an
exploration program focused on diamond drilling and advanced
geophysical techniques is ongoing. The Platosa Property, not fully
explored, has several geological indicators of a large mineralized
system. The Miguel Auza Mill Operation in Zacatecas also has 41,000
hectares of underexplored land. Excellon also has ongoing gold
exploration programs on the DeSantis Project, located near Timmins,
Ontario and the Beschefer Project, located in northwestern Quebec.
Both these projects host gold mineralization and significant potential
for the discovery of more. Excellon will continue to use cash from
operations to fund its ongoing exploration activities.
On behalf of
EXCELLON RESOURCES INC.
Peter A. Crossgrove
Executive Chairman
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this
Press Release, which has been prepared by management. This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 27E of the Exchange Act.
Such statements include, without limitation, statements regarding the
future results of operations, performance and achievements of the
Company, including potential property acquisitions, the timing,
content, cost and results of proposed work programs, the discovery and
delineation of mineral deposits/resources/reserves, geological
interpretations, proposed production rates, potential mineral recovery
processes and rates, business and financing plans, business trends and
future operating revenues. Although the Company believes that such
statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Forward-looking statements are
typically identified by words such as: believe, expect, anticipate,
intend, estimate, postulate and similar expressions, or are those,
which, by their nature, refer to future events. The Company cautions
investors that any forward-looking statements by the Company are not
guarantees of future results or performance, and that actual results
may differ materially from those in forward looking statements as a
result of various factors, including, but not limited to, variations in
the nature, quality and quantity of any mineral deposits that may be
located, significant downward variations in the market price of any
minerals produced [particularly silver], the Company’s inability to
obtain any necessary permits, consents or authorizations required for
its activities, to produce minerals from its properties successfully or
profitably, to continue its projected growth, to raise the necessary
capital or to be fully able to implement its business strategies. All
of the Company’s public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials, including the
technical reports filed with respect to the Company’s mineral
properties, and particularly the November 22, 2011 NI 43-101-compliant
technical report prepared by Roscoe Postle Associates Inc. with respect
to the Platosa Property. This press release is not, and is not to be
construed in any way as, an offer to buy or sell securities in the
United States.
SOURCE Excellon Resources Inc.
