05/29/2012 03:31 EDT | Updated 07/29/2012 05:12 EDT

Complaint filed against Excellon Resources by landowners and workers in Mexico

OTTAWA - Communal landowners and workers at the La Platosa mine have filed a complaint against Excellon Resources (TSX:EXN) in Canada and the Mexico accusing the company of violating labour rights and failing to comply with a land use contract.

David Espinoza, president of the group of communal landowners known as La Sierrita, said the company has failed to build a water treatment plant and has not provided the landowners with food services contracts at the mine or ensured preferential hiring.

"We own this land and entered into this agreement with an explicit understanding that we would be equal business partners in the venture. Instead, the company has ignored its obligations," Espinoza said in statement Tuesday.

Company officials did not immediately respond to a request for comment about the allegations, which have not been proven.

The groups filing the complaint said it is the second time that workers have complained about labour rights violations at La Platosa.

The first complaint was submitted to the Canadian Extractive Sector Corporate Social Responsibility Counsellor in 2011, but they said there was no resolution.

The La Platosa mine in Mexico is a silver, lead and zinc operation.

Excellon was forced to stop operations at its La Platosa last year as a result of demonstrations.

Production stopped after protests limited access to the property to essential service workers and security personnel.