VIDEO - Excellon Resources: We’re in a Full Precious Metals Bull Cycle Right Now

Excellon Resources (TSXV:EXN,OTC Pink:EXLLF) is set to acquire Otis Gold (TSXV:OOO,OTC Pink:OGLDF), and President and CEO Brendan Cahill spoke about the purchase at the Prospectors & Developers Association of Canada (PDAC) convention in Toronto.

Otis Gold owns the Kilgore gold deposit in Idaho, a promising project that was a key motivator behind Excellon’s acquisition.

“We’re interested in it for a couple of reasons,” Cahill told the Investing News Network. “The first is that we truly believe we’re in a full precious metals bull cycle. Once gold moved through US$1,375 per ounce, US$1,400 last spring, almost a year ago now, it was game on.”

As the gold price continued to trend higher, Cahill’s Excellon was determined to up its stake in the precious metals sector, which the deal with Otis will facilitate.

“What this acquisition does is it increases our resource base by about 450 percent on the (measured and indicated) basis, 6,000 percent on the inferred basis — and our metal mix goes from 50/50 precious and base to over 90 percent precious metals,” the executive said. “So it’s really a transformational acquisition for Excellon, going from a blended metal producer to very much a precious metals play.”

The merger, which will create a precious metals-focused producer with silver projects in Mexico and gold assets in the US, is expected to be finalized sometime this month and has been welcomed by Excellon shareholders.

“Our institutional shareholders are very supportive. Eric Sprott is an 18 percent or so shareholder — he signed a support agreement to support the transaction,” Cahill said. “And in our institutional meetings (there’s been) widespread support. They see the value in being larger, developing that growth pipeline and setting ourselves up to have much better leverage for a better precious metals bull market.”

To hear more from Cahill on operating in different jurisdictions and whether 2020 will see more mergers and acquisitions, watch the video above. You can also click here for our full PDAC playlist.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.