Excellon Resources Inc. (TSX:T.EXN, Stock Forum)said that on Monday, July 9, members of the Ejido de La Sierrita, assisted by PRODESC and financially supported by the National Union of Mine, Metal, Steel and Allied Workers of Mexico commenced an illegal action at the company's La Platosa Mine, located in Durango Mexico.
La Platosa is Mexico's highest-grade silver producer; it produces silver, lead and zinc from the high-grade manto mineral resource on its large, wholly-owned Platosa Property, strategically located in the middle of the Mexican CRD/silver belt.
According to the press release, the state and federal governments have informed the company that this action is illegal and as such, Excellon has filed criminal charges for damages against all members and groups who are participating in this illegal action.
However, according to MiningWatch Canada, on July 9, over 70 members of the Ejido (communal landowners) ‘La Sierrita’ blockaded the La Platosa mine because of the company’s violation of key clauses of the land rental contract that the two parties signed in 2008. Issues of violations are unconfirmed at this time.
According to its website, PRODESC, who is advising the communal landowners, is a non-governmental organization that defends economic, social and cultural rights in Mexico.
At present the company continues to produce concentrate from stockpiled material at its mill, Miguel Auza located in Zacatecas State, however, it is expected that the stockpile will be depleted within the next few days. At that time, a decision will be made regarding potential layoffs at Miguel Auza while this action continues.
Excellon is a mineral resource company operating in Durango and Zacatecas States, Mexico, and Ontario and Quebec, Canada, it is committed to building value through production, expansion and discovery.
On Monday, Excellon was trading for $0.52 a share, down from $0.55 a share. The company has a market cap of $144 million, based on $278 million shares outstanding. The 52-week high and low was $0.85 and $0.465 respectively.