Excellon Resources Inc.

Excellon Resources Inc. in its US$50 million acquisition of La Negra Mine in Mexico


Excellon Resources Inc.


US$50 million


Mergers and Acquisitions

Date Closed

January 2023


Mining and Natural Resources

Lead Office



On January 9, 2023, Excellon Resources Inc. announced that it had entered into a definitive agreement to acquire the past producing La Negra Mine in Querétaro State, Mexico. Excellon will acquire Minera La Negra S.A. de C.V., the holding company of the mine, from Dalu S. à r.l., an entity managed by Orion Resource Partners, for aggregate consideration of US$30 million.  In addition, Excellon has agreed to pay an aggregate of US$20 million to Grupo Desarrollador Migo, S.A.P.I. de C.V. in consideration for the termination of existing joint venture arrangements in respect of Minera La Negra. Aggregate consideration will consist of upfront payments totaling US$20 million, payable in common shares of the company. The remaining US$30 million consists of deferred, contingent consideration payable in common share of the company or in cash at the company’s option. With this acquisition, Excellon plans to return the company to producer status on an accelerated timeline of twelve to eighteen months, replacing Excellon’s Platosa property.

Concurrently with the announcement of the acquisition, Excellon announced that it had entered into a binding term sheet with the holders of its outstanding convertible debentures, pursuant to which 25 percent of the outstanding principal amount of the debentures will be converted into Excellon common shares and the terms of the remaining debentures will be amended, including extending the maturity date of the debentures and reprising the conversion price for the debentures.

Excellon Resources Inc., is a silver mining and exploration company that explores for, develops and operates mineral projects in Mexico, the United States and Germany.

Osler, Hoskin & Harcourt LLP advised Excellon Resources Inc. with a team consisting of James Brown, Brett Anderson, Patrick Sullivan, Neil Rosen and Shira Dveris (Corporate).