Highlights:
- Proceeds from the Private Placement will be directed to finalize
construction of 1,000 tonnes per day mining operation Tahuehueto,
located Northwestern Durango State, Mexico
- This funding milestone enables Telson to make application under its
off-take funding agreement with Trafigura to draw down a matching
amount up to US$5 million.
- Telson maintains its target of initiating production at Tahuehueto
during Q1 2019.
VANCOUVER, British Columbia -- (Business Wire)
Telson Mining Corporation (“Telson” or the “Company”)
(TSX-V – TSN, OTC Pink – SOHFF, Frankfurt – TSGN (formerly SQ82)) is
pleased to announce that it has arranged a non-brokered private
placement financing to raise gross proceeds of up to Cdn$6.5 million
aimed at finalizing construction of its 100% owned Tahuehueto Mine.
Private Placement Details
Pursuant to the private placement, up to 8,666,667 Units will be issued
at a price of CAD $0.75 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 such warrant, a
“Warrant”). Each whole Warrant will entitle the holder thereof to
acquire one Common Share at a price of CAD $1.25 for a period of two (2)
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 finder’s 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 CAD$4.6 million of the private
placement proceeds and anticipates the already committed balance of
CAD$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 funding to the Tahuehueto Mine’s
construction under its funding agreement with Trafigura Mexico, S.A. de
C.V., and for general working capital purposes.
Sr. 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 Corporation
Telson Mining Corporation 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% 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 by-products,
processing an average of approximately 2,000+ tons per day through the
Campo Morado milling facilities.
Telson's 100% owned Tahuehueto Project, located in north-western Durango
State, Mexico is currently in construction development. Pre-production
commenced at Tahuehueto in August 2017 and is currently mining at a rate
averaging 170 tonnes per day during Sept 1st – 23rd 2018, shipping ore
to a third-party toll mill for processing. Management has a targeted
timeline at Tahuehueto to be producing with its own on-site mineral
processing plant, with a designed capacity of at least 1,000 tonnes per
day, during the first quarter of 2019.
Regular metal concentrate deliveries and sales are well underway from
both projects.
Visit: www.telsonmining.com
On behalf of the board of directors
(signed) “Ralph Shearing”
Ralph Shearing, P.Geol,
President and Director
Qualified Persons
This press release was prepared under the supervision and review of
Ralph Shearing, P.Geol., President and Director of Telson Mining
Corporation, a Professional Geologist registered in Alberta as a member
of the professional association APEGA, and a Qualified Person as defined
by NI 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.
Cautionary Note Regarding Production Decisions and Forward-Looking
Statements
It should be noted that Telson has declared commercial production at
Campo Morado prior to completing a feasibility study of mineral reserves
demonstrating economic and technical viability. Accordingly, readers
should be cautioned that Telson’s production decision has been made
without a comprehensive feasibility study of established reserves such
that there is greater risk and uncertainty as to future economic results
from the Campo Morado mine and a higher technical risk of failure than
would be the case if a feasibility study was completed and relied upon
to make a production decision. Telson has completed a preliminary
economic assessment (“PEA”) mining study on the Campo Morado mine that
provides a conceptual life of mine plan and a preliminary economic
analysis based on the previously identified mineral resources (see News
Release dated November 8, 2017 and April 4, 2018). This will soon be
replaced by a pre-feasibility study (“PFS”) that will allow the
application of modifying factors to the mineral resources to allow a
portion of them to be converted to mineral reserves. At Tahuehueto,
Telson is mining reserves supported by a pre-feasibility published early
2017.
Statements contained in this news release that are not historical
facts are “forward-looking information” or “forward- looking statements”
(collectively, “Forward-Looking Information”) within the meaning of
applicable Canadian securities laws. Forward Looking Information
includes, but is not limited to, disclosure regarding possible events,
conditions or financial performance that is based on assumptions about
future economic conditions and courses of action; the timing and costs
of future activities on the Company’s properties, such as production
rates and increases; success of exploration, development and bulk sample
processing activities and timing for processing at its own mineral
processing facility on the Tahuehueto project site. In certain cases,
Forward-Looking Information can be identified by the use of words and
phrases such as “plans”, “expects”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or variations of such words and
phrases. In preparing the Forward-Looking Information in this news
release, the Company has appliedseveral materialassumptions,
including, but not limitedto, that the current exploration,
development, environmental and other objectives concerning the Campo
Morado Mine and the Tahuehueto Project can be achieved, the continuity
of the price of gold, zinc, lead and other metals, economic and
political conditions and operations. Forward-Looking Information
involves known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by the Forward-Looking Information.
There can be no assurance that Forward-Looking Information will prove to
be accurate, as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on Forward-Looking Information. Except as
required by law, the Company does not assume any obligation to release
publicly any revisions to Forward-Looking Information contained in this
news release to reflect events or circumstances after the date hereof or
to reflect the occurrence of unanticipated events.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180926005277/en/
Contacts:
Telson Mining Corporation
Glen Sandwell, +1 (604) 684-8071
Corporate
Communications Manager
ir@telsonmining.com
Source: Telson Mining Corporation
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