{"id":1167481,"date":"2020-02-24T13:56:17","date_gmt":"2020-02-24T19:56:17","guid":{"rendered":"https:\/\/www.mining.com\/?p=1014967"},"modified":"2020-02-24T13:56:17","modified_gmt":"2020-02-24T19:56:17","slug":"excellon-to-acquire-otis-in-all-share-deal","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1167481","title":{"rendered":"Excellon to acquire Otis in all-share deal"},"content":{"rendered":"<p>Producer&nbsp;Excellon Resources (TSE: EXN)&nbsp;has announced plans to acquire developer&nbsp;Otis Gold&nbsp;in an all-share deal worth an estimated $32.3 million, based on recent closing stock prices.<\/p>\n<div class='d-flex justify-content-center d-xs-block d-sm-block d-md-none'>\n<div id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {googletag.display('div-gpt-ad-1561499308230-0');});<\/script><\/div>\n<\/div>\n<p>Excellon\u2019s main producing asset is the high-grade underground silver-lead-zinc mine in Mexico whereas Otis holds the Kilgore gold project in Idaho. <\/p>\n<p>Based on a share exchange ratio of 0.23 Excellon shares for each Otis share, the transaction implies a 47% and 55% premium based on spot and 20-day weighted average prices, respectively.<\/p>\n<p>\u201cThe acquisition of Otis Gold represents an exceptional opportunity to further Excellon\u2019s vision of creating wealth,\u201d Brendan Cahill, Excellon\u2019s president and CEO said in a release. <\/p>\n<figure class=\"wp-block-pullquote alignright\">\n<blockquote>\n<p> \u201cKilgore represents a low-cost, high-IRR (internal rate of return) development opportunity that complements and enhances our existing growth pipeline of production and exploration.\u201d <\/p>\n<p><cite> Brendan Cahill, Excellon\u2019s president and CEO <\/cite><\/p><\/blockquote>\n<\/figure>\n<p>\u201cKilgore represents a low-cost, high-IRR (internal rate of return) development opportunity that complements and enhances our existing growth pipeline of production and exploration.\u201d<\/p>\n<p>Kilgore is a potential open-pit, heap leach project with indicated resources of 44.6 million tonnes grading 0.58 g\/t gold for a total of 825,000 ounces and additional inferred resources of 9.4 million tonnes at 0.45 g\/t gold for a total of 136,000 ounces. <\/p>\n<p>A 2019 preliminary economic assessment for the project outlined an operation producing an average of 112,500 ounces of gold annually at an initial capital cost of $81 million with an associated $110 million net present value estimate, at a 5% discount rate.<\/p>\n<p>A number of higher-grade step-out targets have been identified at Kilgore; the deposit is also open for expansion. Results from the 2020 exploration program will be incorporated into an updated resource estimate for the project.<\/p>\n<p>\u201cWe are excited to partner with an experienced producer to aggressively move the Kilgore project forward,\u201d Craig Lindsay, Otis Gold\u2019s president and CEO added. <\/p>\n<p>\u201cWe believe that Kilgore is on the cusp of significant growth and we strongly feel that Excellon\u2019s technical and management team are well-positioned to both re-imagine and fast-track the project\u2019s development.\u201d<\/p>\n<p>Boards of both companies have recommended support for the transaction; 25% of Otis and 20% of Excellon shareholders have entered into voting support agreements. Shareholder meetings for voting on the transaction are expected in April. The agreement includes a reciprocal break fee of $1 million.<\/p>\n<p>The combined company will be managed by individuals from both Excellon and Otis. Excellon shareholders will own 74% of the combined company.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Otis holds the Kilgore gold project in Idaho.<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[2849,369,2640],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1167481"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1167481"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1167481\/revisions"}],"predecessor-version":[{"id":1167482,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1167481\/revisions\/1167482"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1167481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1167481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1167481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}