SOHFF - Telson Closes Non-Brokered Private Placement for Gross Proceeds of $10.08 Million
(TheNewswire)
Vancouver, British Columbia - TheNewswire - March 30, 2021 - Telson Mining Corporation (“ Telson ” or the“ Company ” (TSXV:TSN ) ( OTC:SOHFF ) ( Frankfurt:TSGN) is pleased to announce that it has closed thenon ? brokered privateplacement (the “ PrivatePlacement ”) originally announced on February23, 2021.
" We arevery please to deliver this exciting news to Telson shareholders andinvestors ." States Ralph Shearing,President & CEO. " Closing this private placement as the first tranche of the AccendoSyndicate recently announced US $25 million funding package now allowsus to immediately reinitiate construction at Tahuehueto where Telsonis targeting initial gold production near the end of 2021. We thankour funding partners, Accendo Banco, Endeavour Financial and EmpressRoyalty as well our concentrate off-taker and lenders for theircooperation and assistance in our efforts to close this privateplacement .”
The Company issued 50,400,000 units (each, a“ Unit ”) of the Company at a price of $0.20 per Unit foraggregate gross proceeds of $10,080,000. Each Unit is comprised of onecommon share (a “ CommonShare ”) and one-half of one common sharepurchase warrant (each whole such warrant, a “ Warrant ”). EachWarrant entitles the holder thereof to purchase one additional CommonShare of the Company at a price of $0.30 per Common Share within 24months from March 29, 2021 (the “ Closing Date ”). All securities issued under the Private Placementare subject to a hold period expiring four months and one day afterthe Closing Date. Total issued and outstanding Common Shares of theCompany after completion of the Private Placement is 236,069,954 .
In accordance with applicable securities laws and thepolicies of the TSX Venture Exchange (the “ Exchange ”), theCompany paid a total of $418,590 in cash as finder’s fees to certainfinders in connection with the Private Placement.
This press release is also being disseminated asrequired by National Instrument 62 ? 103 – The Early Warning System and Related TakeOver Bids and Insider Reporting Issues inconnection with the filing of an early warning report (the“ Early WarningReport ”) regarding the acquisition ofsecurities of the Company by Estratégica Corporativa en Finanzas,S.A.P.I. de C.V. (“ Estrategica ”) of Mexico. Estratégicaacquired 500,000 Common Shares of the Company at a price of $0.20 perCommon Share and Warrants to acquire an additional 250,000 CommonShares at a price of $0.30 per Warrant under the PrivatePlacement.
Prior to the Private Placement, Estratégicabeneficially owned 36,815,560 Common Shares. Accordingly, Estratégicabeneficially owns an aggregate of 37,315,560 Common Shares of theCompany, representing approximately 15.81% of the 236,069,954 issued and outstandingCommon Shares of the Company on an undiluted basis and approximately17.17% (41,198,658 Common Shares) of the Company’s 239,953,052issued and outstanding Common Shares, on a partially diluted basis,assuming exercise of all warrants held by Estratégica.
As previously reported in the Early Warning Reportfiled by Estratégica dated May 27, 2020, Roberto Guzman Garcia(“ Guzman ”) a director of Telson, is the controlling mind ofEstratégica, and Estratégica has previously acted jointly withPromotora de Sistemas de Information, S.A.P.I. de C.V.(“ Promotora ”) and Macro Holdings & Investments, LLC(“ Macro ”). Guzman, Promotora and Macro did not participate in thePrivate Placement. Together, Estratégica, Guzman, Promotora and Macro(the “ JointActors ”) own and control 58,650,554 CommonShares and 3,883,098 warrants of Telson.
On a non-diluted basis, the Joint Actors own or controlapproximately 24.84% of the 236,069,954 issued and outstandingCommon Shares of Telson and, on a partially diluted basis (assumingexercise of warrants held by the Joint Actors)the Joint Actors own or control approximately 26.06% of the CommonShares of Telson. Estratégica acquired the securities for investmentpurposes and may increase or decrease its beneficial ownership orcontrol depending on market or other conditions.
A copy of the Early Warning Report for Estratégica canbe found under the Company’s profile at www.SEDAR.com .
About Telson Mining Corporation
Telson Mining Corporation is a Canadian based mining company with two100% owned Mexican gold, silver, and base metal mining projects.
Telson's Tahuehueto mining project is located in north-western DurangoState, Mexico where construction has been advanced to an estimated 60%of completion. Upon closing of the recently announced US$25 millionfunding package, Telson will have funding available to finishconstruction of its 1,000 tonne per day processing facility andrelated mine infrastructure to initiate production of gold, silver,lead, and zinc in concentrates at Tahuehueto. The Company is targetinginitial production by end of 2021 and ramping up to full productioncapacity during Q1 2022.
Campo Morado is an operating polymetallic base metal mine with miningand milling equipment currently producing at an average ofapproximately 2,150 tonnes per day and is currently estimated to beMexico’s 6th largest zinc producer.
Visit: www.telsonmining.com
On Behalf of the Board ofDirectors
(signed) “Ralph Shearing”
Ralph Shearing, P. Geol, Presidentand Director
Cautionary Note Regarding ProductionDecisions and Forward-Looking Statements
It should be noted that Telson declared commercialproduction at Campo Morado prior to completing a feasibility study ofmineral reserves demonstrating economic and technical viability.Accordingly, readers should be cautioned that Telson’s productiondecision has been made without a comprehensive feasibility study ofestablished reserves such that there is greater risk and uncertaintyas to future economic results from the Campo Morado mine and a highertechnical risk of failure than would be the case if a feasibilitystudy were 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 lifeof mine plan and a preliminary economic analysis based on thepreviously identified mineral resources (see News Release datedNovember 8, 2017 and April 4,2018).
Statements contained in this news release that are nothistorical facts are “forward-looking information” or“forward-looking statements” (collectively, “Forward-LookingInformation”) within the meaning of applicable Canadian securitieslaws. Forward Looking Information includes, but is not limited to,disclosure regarding the planned recommencement of mining operationsat Campo Morado; and other possible events, conditions or financialperformance that are based on assumptions about future economicconditions and courses of action; the timing and costs of futureactivities on the Company’s properties, such as production rates andincreases; success of exploration, development and bulk sampleprocessing activities, and timing for processing at its own mineralprocessing facility on the Tahuehueto project site. In certain cases,Forward-Looking Information can be identified using words and phrasessuch as “plans,” “expects,” “scheduled,” “estimates,”“forecasts,” “intends,” “anticipates” or variations ofsuch words and phrases. In preparing the Forward-Looking Informationin this news release, the Company has applied several materialassumptions, including, but not limited to, that the currentexploration, development, environmental and other objectivesconcerning the Campo Morado Mine and the Tahuehueto Project can beachieved; that recommencement of operations at Campo Morado willproceed as planned; the continuity of the price of gold and othermetals, 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 differentfrom any future results, performance or achievements expressed orimplied by the Forward-Looking Information. There can be no assurance that Forward-Looking Information willprove to be accurate, as actual results and future events could differmaterially from those anticipated in such statements. Accordingly,readers should not place undue reliance on Forward-LookingInformation. Except as required by law, the Company does not assumeany obligation to release publicly any revisions to Forward-LookingInformation contained in this news release to reflect events orcircumstances after the date hereof or to reflect the occurrence ofunanticipated events.
Neither TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
For further information about TelsonMining Corporation, please contact:
Glen Sandwell
Corporate Communications Manager
ir@telsonmining.com
Tel: +1 (604) 684-8071
Copyright (c) 2021 TheNewswire - All rights reserved.