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.
We seek Safe Harbor.
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