Excellon Resources has finalized its acquisition of the Mallay Silver Mine in Peru. This mine is fully permitted and previously productive, with a history of significant output. This strategic move includes a nearby exploration property, Tres Cerros, and is expected to facilitate a return to silver production. CEO Shawn Howarth expressed optimism about the operational readiness post-acquisition.
Excellon Resources Inc., a Toronto Stock Exchange-listed firm, announced on June 24, 2025, that it has successfully finalized the acquisition of Minera CRC SAC. This Peruvian company holds full ownership of the Mallay Silver Mine and the adjacent Tres Cerros gold-silver exploration site. The Mallay Mine is a significant asset; it is a fully permitted, previously operating underground facility that produced silver, lead, and zinc. It benefits from established infrastructure, such as a flotation plant and direct grid power access.
The history of the Mallay Mine dates back to its operation by Buenaventura between 2012 and 2018, during which it yielded over 18 million ounces of silver-equivalent minerals. The Tres Cerros property complements the acquisition, covering about 2,000 hectares with promising high-sulphidation gold-silver mineralization. Excellon plans to explore both sites actively, with immediate near-mine exploration at Mallay and early surface mapping at Tres Cerros.
Shawn Howarth, the CEO of Excellon, shared insights regarding the acquisition after visiting the Mallay site. He expressed confidence in the existing infrastructure and the readiness of his team to begin operations. “We are confident that the underground rehabilitation can be completed within a four-month period,” Howarth stated, signaling optimism that a production decision could soon follow. This acquisition is seen as a pivotal moment for Excellon, aiming to resume its silver production efforts.
In terms of next steps, Excellon is poised to commence mine rehabilitation and associated technical studies without delay. The company anticipates a decisive restart decision within three to six months. Additionally, there is an ongoing mineral resource estimate based on available historical data, which will play a crucial role in unlocking further potential for mineralization by reopening access to underground levels and conducting further drilling.
The acquisition was made possible through a structured series of agreements involving Adar Mining Corp., Premier Silver Corp., and 1267104 B.C. Ltd. As part of the deal, Excellon undertook around $2.2 million in cash payments, issued over 17.8 million common shares, and accepted existing obligations tied to the mine. Importantly, this transaction encompasses various agreements, including royalty and streaming arrangements, alongside a back-in rights agreement concerning the Tres Cerros property.
Excellon Resources has successfully acquired the Mallay Silver Mine in Peru, a strategic move aimed at restarting silver production. With an effective plan to rehabilitate the mine and conduct further exploration, the company is positioning itself to decisively advance in the mining sector. In addition to the mallay mine acquisition, Tres Cerros presents potential for significant mineral exploration. With a well-structured agreement and financial commitments in place, Excellon appears to be laying a strong foundation for its operations.
Original Source: ca.proactiveinvestors.com
