Sep 14 2022Reviewed by Mila Perera
Shareholders of Globex Mining Enterprises Inc. were given an update on Excellon Resources Inc.’s intentions for the Silver City Property in Saxony, Germany, a large portion of which is under Globex’s option.
Image Credit: Shutterstock.com/Red ivory
As an exploration firm concentrating on Europe, Excellon is considering the timing and form of a spin-out of its Silver City Project in Saxony, Germany. The Company anticipates that SpinCo would arrange fundraising connected to the potential spin-out to raise money for working capital and further exploration efforts.
Additionally, the Company would seek to list SpinCo shares on a reputable Canadian stock exchange, subject to satisfying all necessary regulatory and listing criteria.
Excellon shareholders can expect several advantages of SpinCo, such as:
- Silver City, a publicly traded exploration company with an emphasis on Europe, is anticipated to have its valuation reset
- A fresh opportunity for investors looking for direct access to a high-grade, district-scale silver exploration project in a supportive environment
- The possibility of increased trading liquidity for SpinCo as a distinct publicly traded business
Up until the late 19th century, high-grade silver was mined at Silver City for more than 800 years. An extensive epithermal silver system is covered by 340 km2 of exploration rights held by Excellon. High-grade intersections include 1,043 g/t AgEq over 1.3 m, 1,042 g/t AgEq over 0.45 m, and 1,633 g/t AgEq over 0.35 m.
Germany’s Saxony region has an amazing exploration team and institutional backing for Silver City.
Source: https://www.globexmining.com/