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Enter Symbol
or Name
USA
CA



Telson Mining Corp
Symbol TSN
Shares Issued 130,434,348
Close 2018-09-25 C$ 0.47
Market Cap C$ 61,304,144
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Telson Mining arranges $6.5-million private placement

2018-09-26 07:37 ET - News Release

Mr. Ralph Shearing reports

TELSON MINING CORPORATION ANNOUNCES $6.5 MILLION FINANCING TO ENTER FINAL STAGE OF CONSTRUCTION AT TAHUEHUETO

Telson Mining Corp. has arranged a non-brokered private placement financing to raise gross proceeds of up to $6.5-million aimed at finalizing construction of its 100-per-cent-owned Tahuehueto mine.

Private placement details

Pursuant to the private placement, up to 8,666,667 units will be issued at a price of 75 cents per unit. Each unit will consist of one common share in the share capital of the company and one-half of one transferable common share purchase warrant. Each whole warrant will entitle the holder thereof to acquire one common share at a price of $1.25 for a period of two years following the closing of the private placement.

All common shares issued in connection with the private placement will be subject to a four-month-plus-one-day hold period under applicable Canadian securities laws. No finders' fees were paid in connection with the private placement. The private placement is subject to the approval of the TSX Venture Exchange.

The company has received approximately $4.6-million of the private placement proceeds and anticipates the already committed balance of $1.9-million to be advanced shortly.

The net proceeds from the units will be used by the company to cover the corporation's requirement to contribute financing to the Tahuehueto mine's construction under its financing agreement with Trafigura Mexico SA de CV and for general working capital purposes.

Jose Antonio Berlanga, Telson's chief executive officer, stated: "This private placement is priced at a significant premium to the company's current market trading price and has been taken up by management, officers, directors and insiders of the company. It is reflective of the confidence we have in Telson's assets and future growth potential, both in the short term and long term, as well as displays our strong commitment to all our shareholders and investors. Despite the current weak metals market, Telson continues to increase production at Campo Morado, and at the same time steadily advances the construction of our Tahuehueto mine with underground development, site preparation/construction as well as infrastructure development.

"We expect that 2019 will be an exciting year for Telson and its shareholders as we bring Tahuehueto into production and commence generating sales of concentrates from two mines."

About Telson Mining Corp.

Telson Mining is a Canadian-based mining company with two Mexican gold, silver and base metal mining projects.

Telson is currently in commercial production at its 100-per-cent-owned Campo Morado mine in Guerrero, Mexico. Effective May 15, 2018, Telson declared commercial production at Campo Morado. Telson is currently producing zinc and lead concentrates with gold, silver and copper as byproducts, processing an average of approximately plus 2,000 tons per day through the Campo Morado milling facilities.

Qualified persons

This press release was prepared under the supervision and review of Ralph Shearing, PGeol, president and director of Telson Mining, a professional geologist registered in Alberta as a member of the professional association APEGA, and a qualified person as defined by National Instrument 43-101. Data verification by Mr. Shearing includes personal inspection of the Campo Morado and Tahuehueto mine sites, reviewing mining facilities, drill core, underground development, and discussing work programs and results with geology and mining personnel.

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