(TheNewswire)
Vancouver, British Columbia / TheNewswire / Monday October 30, 2017.
Highlights:
-Executed terms sheet for loan facility with Trafigura for up to US$15 million for mine construction.
-Funding enables construction of mineral processing facility, related mining facilities, plus infrastructure and underground development at Tahuehueto
-Funds Available to the Company in Three Tranches According to Development Progress and certain conditions with first tranche within 30 days of signing formal agreements.
-The Offtake Terms are for 100% production of zinc and lead concentrates with a minimum fixed tonnage, starting delivery in January 2018 and ongoing until December 2022
Telson Resources Inc. ("Telson" or the "Company") (TSX Venture - TSN.V) is very pleased to announce it has signed a term sheet of a Loan Facility and Offtake Agreement with Trafigura Mexico S.A. de C.V. ("Trafigura"), a market leader in the global commodities industry, to sell 100% of the lead and zinc concentrate produced at the Tahuehueto Mine from January 1st 2018 to December 31st 2022. Trafigura will provide Telson with a credit facility of US$15 million upon signing formal agreements, thereby securing the bulk of the capital requirements to construct and operate an ongoing 1,000 tonne per day mining operation at Tahuehueto.
Although Telson cannot guarantee the completion and signature of final contracts, negotiations have reached fully mutual agreement terms and the parties have signed a term sheet providing comfort to both parties to conclude and execute final contracts which are being currently drafted and are expected to be signed during the next couple of weeks.
About Trafigura
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world. The trading business is supported by industrial and financial assets, including 49.6% owned global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; 50% owned DT Group which specializes in logistics and trading; and Galena Asset Management. The Company is owned by around 600 of its 4,100 employees who work in 61 offices in 36 countries around the world. Trafigura has achieved substantial growth over recent years, growing revenue from US$12 billion in 2003 to US$98.1 billion in 2016. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade.
Visit: www.trafigura.com
About Telson Resources Inc.
Telson Resources Inc. is a Canadian based mining
company producing gold, silver and base metal from its two Mexican
Mine Projects. Telson's Tahuehueto Project, located in north-western
Durango State, Mexico and its recently acquired Campo Morado Mine in
Guerrero, Mexico are both polymetallic deposits containing significant
gold, silver, lead, zinc and copper. Telson is currently mining and
procession ore at its 100% owned Campo Morado
Mine at a rate of approximately 1,400 tonnes per day and at its 100%
owned Tahuehueto Mine Project at a rate of approximately 150 tonnes
per day and direct shipping Tahuehueto preproduction ore to a toll
mill for processing off-site. By securing the funding outlined in this
Press Release, Telson will initiate the construction of a commercial
mining operation on its Tahuehueto project, with an expected timeline
to be completed and operational during the summer of 2018.
Visit: www.telsonresources.com
On behalf of the board of directors
(signed) "Ralph Shearing"
Ralph Shearing, P.Geol, President and Director
Qualified Person
This press release was prepared under the
supervision and review of Ralph Shearing, P.Geol., President and
Director of Telson Resources Inc., a Professional Geologist registered
in Alberta as a member of the professional organization APEGA, and a
Qualified Person as defined by NI 43-101.
Cautionary Note
Regarding Forward-Looking Statements
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 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
For further information about Telson
Resources Inc., please contact:
Glen Sandwell
Corporate Communications Manager
ir@telsonresources.com
Tel: +1 (604) 684-8071
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