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 report that it has received US$5 million for the second
tranche of the loan agreement with Trafigura Mexico S.A. de C.V.
(“Trafigura”), advanced under the Loan Facility and Offtake Agreement
(the “Off-Take Agreement”) originally announced by the Company Dec
18, 2017, for the rehabilitation, construction, operation and
working capital of the Tahuehueto Mine.
Highlights
-
Trafigura, one of the world’s leading independent commodity trading
houses advances US$5 million as the second funding tranche under the
Off-Take Agreement.
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This US $5 million when combined with the proceeds of recently closed
CAD$6.8 million proceeds from the private placement provides bulk of
funding required to complete the construction of the 1,000 tpd
Tahuehueto Mine.
Antonio Berlanga, CEO, states “Telson has now received its second
Trafigura loan funding tranche in the amount of US $5 million, which
funds when combined with our recently closed C$6.8 million private
placement funding, (see
Oct 10, 2018 press release), exceeds US$10 million. We are now
almost fully funded to complete the mine construction at Tahuehueto and
are targeting a mine start-up during Q1 2019.An additional US
$2.5 million third tranche is available under the Offtake Loan Agreement
should additional funding be required however, we anticipate that
pre-production concentrate sales proceeds will forego the need for
Telson to draw down that third tranche.We would like to thank
Trafigura for its continuing support and look forward to providing
shareholders construction updates in the coming months."
“Trafigura Mexico is very pleased with Telson’s Mexican operations,
both Tahuehueto and Campo Morado, and are fully confident that Telson’s
management will soon deliver a new operating mine at Tahuehueto”, states
Edmundo Vidal, Latin American Director of Trafigura, “We are looking
forward to receiving the increased high-quality gold rich concentrate
production from Telson's 1,000 tpd operating Tahuehueto Mine early next
year.”
The Company has been steadily advancing its Tahuehueto Mine Project with
extensive underground development to access ore reserves on multiple
working faces within numerous veins that will provide the mines mill
feed upon start up as well as, progressing construction of mill, camp
and all related required infrastructure. Please see October
2, 2018, and Oct
15, 2018 press releases for further project mine construction and
development information.
New Director
The Company is also pleased to announce the appointment of Mr. Roberto
Guzman to its Board of Directors. Mr. Guzmán obtained a master’s degree
in Finance from the Universidad Tecnologica de Mexico in 1989 and has
more than 25 years of experience in the Financial Sector, primarily in
Mexico. Initially working as finance manager for several Mexican
publicly traded companies, such as Finamex S.A. de C.V., Bursamex S.A.
de C.V and Invermexico S.A. de C.V, as well as other private Mexican
financial companies, including Unión de Crédito Metropolitana SA de CV,
Soluciones Integral SA de CV and FOVISSTE. Mr. Guzman is also a Director
of Bursamétrica Casa de Bolsa, a Mexican brokerage firm.
Mr. Guzman, an indirect controlling shareholder and insider of the
Company is currently President, Director and major shareholder of the
ESCORFIN Group, which owns several private equity funds that specialize
in real estate development, energy innovations, and tourism investment
in Mexico.
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
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, currently mining at a rate
averaging approximately 200 tonnes per day and 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
Cautionary Note Regarding Production Decisions and Forward-Looking
Statements
It should be noted that at Tahuehueto, Telson is mining reserves
supported by a pre-feasibility published early 2017 while at Campo
Morado pre-production mining is proceeding without the benefit of
pre-feasibility or feasibility studies that outline mineral reserves and
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 Campo Morado 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.
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 applied several material assumptions,
including, but not limited to, 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/20181106005326/en/
Contacts:
For further information about Telson Mining Corporation, please contact:
Glen
Sandwell, Corporate Communications Manager
ir@telsonmining.com
Tel:
+1 (604) 684-8071
Source: Telson Mining Corporation
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