15:29:09 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Telson Mining Corp
Symbol TSN
Shares Issued 139,559,153
Close 2018-10-05 C$ 0.455
Market Cap C$ 63,499,415
Recent Sedar Documents

Telson Mining closes $6.84-million private placement

2018-10-10 08:03 ET - News Release

Mr. Antonio Berlanga reports

TELSON CLOSES $6.8 MILLION OVERSUBSCRIBED FINANCING AT 39% PREMIUM TO MARKET

Telson Mining Corp. has closed its non-brokered private placement financing consisting of 9,124,805 units of the company at a price of 75 cents per unit for gross proceeds of $6,843,603.

The financing was originally announced in a press release dated Sept. 26, 2018, and was closed oversubscribed by 458,138 units representing an additional $343,604.

Each unit of the private placement consists of one common share and one-half of one transferable common share purchase warrant. Each whole purchase warrant entitles the holder thereof to acquire one common share of the company 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 are 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 total issued and outstanding common shares of the company after completion of the private placement are 139,559,153.

The private placement included four insiders of the company subscribing for a total of 8,008,755 units for aggregate subscription proceeds of $6,006,566. That portion of the private placement is a related-party transaction as defined under Multilateral Instrument 61-101. In addition, one of the insiders is a significant shareholder with a control position in the company, for which the company previously received shareholder consent in late 2015, in accordance with TSX Venture Exchange policy. The company is relying on the exemptions from the formal valuation and minority approval requirements under MI 61-101. The company is exempt from the formal valuation and minority approval requirements of MI 61-101 in reliance of sections 5.5(b) and 5.7(1)(a), as the fair market value of the private placement, insofar as it involves related parties, is not more than 25 per cent of the company's market capitalization.

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

Closing of this private placement also qualifies the company to request a second tranche from its loan agreement with Trafigura for up to $5-million (U.S.), which when combined with the proceeds from the private placement, is estimated to be sufficient capital to complete the construction of the Tahuehueto mine, targeted for completion during the first quarter of 2019.

Antonio Berlanga, chief executive officer, states: "We are thrilled to complete this financing on behalf of Telson's shareholders. This above-market-priced financing, largely subscribed to by insiders of the company, clearly demonstrates management and insider commitment to shareholders by avoiding discounted-market-priced dilutive financings while securing the necessary financing to complete the Tahuehueto mine construction."

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, and is producing zinc and lead concentrates with gold, silver and copper as byproducts, processing an average of approximately 2,000 tonnes per day.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.