Vancouver, British Columbia, May 10, 2021
Telson Mining Corporation (“Telson” or the “Company” (TSX-V: TSN; OTC Pink: SOHFF; Frankfurt: TSGN) is pleased to announce a restructuring of its Board of Directors, the execution of a Financial Advisory Agreement with Endeavour Financial and a corporate name change, all to better reflect and support the current growth of the Company as it continues construction of its flagship Tahuehueto Gold mine, improves efficiencies and metal recoveries at its Campo Morado operating mine and progresses on its development towards becoming a mid-tier metal producer in Mexico.
The Company welcomes David Rhodes as Director and Chairman of the Board, Natascha Kiernan, Mark Bailey and Tom Kelly, all as Independent Directors.
The addition of these highly qualified and experienced independent directors strengthens the Company’s corporate governance and adds considerable business and industry experience to the Company’s board of directors.
“Telson is extremely pleased to have attracted such qualified and experienced directors as David, Natascha, Mark and Tom” states Ralph Shearing, President & CEO, “The professional talent level and industry experience of new incoming directors, from a financial, technical and legal perspective, will definitely complement that of incumbent directors and will most certainly strengthen the company’s Board of Directors and ongoing business.”
David’s career in the finance industry has spanned more than twenty-five years. David is also the Managing Director of Endeavour Financial. Endeavour is one of the top mining financial advisory firms, with an award-winning record of accomplishment in the mining industry, specialising in arranging multi-sourced funding solutions for development companies. Endeavour additionally, has an asset management and developing insurance business. Prior to joining Endeavour over fourteen years ago, David was at Standard Bank London Limited, Barclays Capital and Royal Bank of Scotland. At Standard and Barclays, he sourced, structured, and syndicated finance for mining projects and companies on a global basis. Having lived and worked in London and New York he has international experience of the North/South American, European, CIS, and African markets. As a result, he has arranged over US$18 billion of funding for mining companies.
Natascha Kiernan is a lawyer, consultant, and public company director with over 15 years of experience specializing in transactions involving mining and other natural resources. Natascha has held senior positions with several prominent international law firms, including in the New York and London offices of Skadden, Arps, Slate, Meagher & Flom, and was listed as a “Top 40 under 40” rising legal star by the Financial News. She has advised governments, financial institutions and corporations in numerous complex, multi-billion-dollar financings and M&A transactions in jurisdictions around the globe. She brings extensive legal experience in mining, as well as corporate governance expertise.
Mark Bailey is a mining executive and registered professional geologist with 44 years of industry experience. Mark has a B.Sc. degree in Geology from the University of Washington and a M.Sc degree in Geology from Oregon State University.
Between 1995 and 2012, he was the President, Chief Executive Officer, and a Director of Minefinders Corporation Ltd. (“Minefinders”), a precious metals mining company that discovered, developed, and operated the multi-million-ounce Dolores gold and silver mine in Mexico before being acquired by Pan American Silver Corp in 2012. Before joining Minefinders, Mark held senior positions with Equinox Resources Inc., acquired by Hecla Mining in 1994 and Exxon Minerals Company. Since 1984, he has worked as a consulting geologist with Mark H. Bailey & Associates LLC. Mark is currently the non-executive Chairman of the Board of Entrée Resources Ltd., the non-executive Chairman of the Board of Fiore Gold Ltd. and was a director of Mason Resources Corp. until its acquisition by Hudbay Minerals Inc. in 2018. Mark was a director of Core Gold Ltd. until its acquisition by Titan Minerals Ltd. in 2020.
Thomas (Tom) Kelly has both Bachelor's and Master's Degrees in mining engineering from the Colorado School of Mines, is a Fellow of the Australasian Institute of Mining and Metallurgy and a registered member of the Society for Mining, Metallurgy & Exploration. He serves as a Qualified Person for several minerals' companies in Canada and overseas.
Tom has over 40 years of worldwide experience with mineral industry leaders such as Freeport-McMoRan Copper & Gold, AMEC Americas, and others. He has deep experience internationally in mine development, mine valuation, reserve estimation, junior company corporate management, being a corporate director and is fluent in Spanish. Tom is currently a Director of Antioquia Gold Inc. and serves as Country Manager for Antioquia Gold in Colombia.
To accommodate the appointment of the above new directors, Telson has accepted the voluntary resignation of Yao Sun, Enrique Margalef, and Rory Godinho all of whom have diligently served the company contributing their experience, time and effort helping Telson to reach its goals. Rory Godinho along with his colleagues at Miller Thomson LLP will continue as the Company’s securities and corporate legal counsel. Enrique Margalef has been appointed as Telson’s Mexico Country Administration Manager assuming a more active role within Mexico and Yao Sun will remain involved with the Company in an advisory role to liaise with Company’s current Asian shareholders and new potential investors. Telson wishes to express its sincere gratitude to departing directors for their past service to the company.
Telson’s Board of Directors now consists of seven members as follows: David Rhodes, Natascha Kiernan, Tom Kelly, Mark Bailey, Roberto Guzman Garcia, Ruben Alvidrez Ortega and Ralph Shearing.
Telson also reports that it has executed a Financial Advisory Services Agreement with Endeavour Financial Ltd., to provide the Company with general corporate financial advice with respect to its strategic direction and corporate development, pursuant to which Endeavour Financial Ltd will provide advice and assistance regarding the solicitation, structuring, negotiating, and closing of potential transactions. This relationship exposes the Company to Endeavour’s industry network of contacts and large human resources pool to provide strategic advice and support with respect to agreements, transactions, metal offtake arrangements, hedging or forward commodity sales etc. David Rhodes and the Company will manage any conflict resulting from the arrangement with Endeavour Financial and Mr. Rhodes will abstain from voting and make appropriate disclosures as required by applicable corporate and securities laws in connection with Telson’s relationship with Endeavour.
To complement the Company’s board restructuring and accelerated pace of development, the Company is pleased to inform its shareholders that it intends to change its corporate name to Altaley Mining Corporation. The name change and corporate rebranding will be progressed over the coming weeks and is subject to the Company’s filing requirements with the TSX Venture Exchange, including obtaining a new CUSIP and stock symbol.
Telson Mining Corporation is a Canadian based mining company with two 100% owned Mexican gold, silver, and base metal mining projects.
Telson's Tahuehueto mining project is in north-western Durango State, Mexico where construction has been advanced to an estimated 60% of completion. Upon closing of the recently announced US$25 million funding package, Telson will have funding available to finish construction of its 1,000 tonne per day processing facility and related mine infrastructure to initiate production of gold, silver, lead, and zinc in concentrates at Tahuehueto. The Company is targeting to start pre-production by the end of 2021 and ramping up to full production capacity during Q1 2022.
Campo Morado is an operating polymetallic base metal mine with mining and milling equipment currently producing at an average of 2,150 tonnes per day and is currently estimated to be Mexico’s 6th largest zinc producer.
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 Telson 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 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 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).
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 the planned recommencement of mining operationsty6 at Campo Morado; and other possible events, conditions or financial performance that are 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 using 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; that recommencement of operations at Campo Morado will proceed as planned; 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.
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.
For further information about Telson Mining Corporation, please contact:
Corporate Communications Manager
Tel: +1 (604) 684-8071