Excellon surges to 2-year high after Peruvian acquisition
Shares of Excellon Resources Inc. (TSX: EXN) soared to a two-year high on Tuesday following the announcement of a strategic acquisition in Peru, a move that significantly bolsters the company's footprint in Latin America’s resource-rich mining sector.
The Canadian-based silver and base metals miner saw its stock surge by over 25% in intraday trading after it revealed the purchase of a majority interest in the high-grade Santa Lucia polymetallic project located in southern Peru. This marks Excellon’s most ambitious move since its restructuring in late 2023 and is widely viewed by analysts as a transformative deal for the company.
Strategic Expansion in Latin America
The acquisition includes both existing exploration licenses and infrastructure that could accelerate development timelines. The Santa Lucia project is situated in one of Peru’s most prolific mining belts and is believed to contain significant reserves of silver, lead, and zinc.
“This acquisition aligns perfectly with our strategic vision of building a high-margin portfolio of assets in premier mining jurisdictions,” said Shawn Howarth, President and CEO of Excellon Resources. “Peru is a tier-one mining destination, and Santa Lucia provides a compelling opportunity to deliver long-term value to our shareholders.”
The deal, reportedly valued at approximately US$42 million, will be financed through a mix of equity and existing credit facilities. Excellon has also signaled intentions to invest heavily in local partnerships and community development efforts to support the project’s advancement.
Market Reaction and Analyst Optimism
Investors reacted swiftly to the news, sending Excellon shares to their highest level since mid-2023. The surge reflects growing confidence in the company’s ability to execute its turnaround strategy, especially after years of operational challenges at its former Platosa Mine in Mexico, which ceased production in 2022.
“Today’s announcement validates Excellon’s transition from a marginal producer to a strategic consolidator in Latin America,” said Amanda Torres, a mining analyst at Beacon Securities. “The Santa Lucia acquisition has the scale, grade, and geopolitical stability that investors have been looking for.”
Looking Ahead
With exploration drilling expected to begin in Q4 2025, Excellon aims to deliver a maiden resource estimate by early 2026. The company is also exploring additional acquisition targets in the region as part of its broader growth plan.
As Excellon regains investor confidence and repositions itself in the global mining space, today’s market reaction may signal the beginning of a new chapter — one defined by strategic growth and operational focus.
