MVP subscribes to Excellon placement

Toronto-based Excellon Resources (VSE) has completed a private placement valued at $550,000.

The placement consists of 1.1 million common shares and warrants exercisable for two years for an additional 550,000 shares. The warrants will be priced at 60 cents a share for the first year and 70 cents each for the second.

As part of the placement, MVP Capital (TSE) has subscribed to 900,000 common shares and warrants to buy an additional 450,000 shares. Subsequently, a debt-holder of MVP exercised warrants to buy 250,000 Excellon common shares from MVP. At this point, MVP owns 34.6% of the warrants to buy an additional 450,000 shares in Excellon which, if exercised, would give the former a 40.3% interest in the latter’s outstanding shares.

The companies jointly own a gold and base metal property near Tombstone, Ariz., and proceeds from the placement will be used by Excellon to fund its portion of the first phase of exploration there.

The program will consist of about 30 holes or 10,000 ft. of drilling to extend the geological resource in two separate zones. The resource estimates of the zones are 1.1 million tons averaging 0.063 oz. gold equivalent per ton and 289,000 tons averaging 0.098 oz. gold equivalent.