Vancouver, British Columbia, Dec 27, 2019
Telson Mining Corporation (“Telson” or the “Company” (TSX.V-TSN, OTC Pink-SOHFF, Frankfurt-TSGN (formerly SQ82)) advises that reactivation activities to bring its Campo Morado mine out of care and maintenance back into production are progressing and anticipates to resume mining and processing activities mid January 2020.
After having electrical power restored to the mine site three weeks later than anticipated due to scheduling delays with the electrical power authority CFE, personnel commenced dewatering the mine and at this point in time access has been restored to the El Largo zone where there is approximately 50,000 tons of broken mineralized material available for transport to the mill site and at the mill site, approximately another 20,000 tons of previously mined transported mineralized material is available to begin processing upon start-up.
Personnel are advancing on the process of checking, servicing, and repairing as necessary, all mill processing equipment, mobile mining equipment, underground mining equipment, ventilation systems and safety equipment etc. Mining operations will resume as soon as possible.
Private Placement Financing
Telson intends to conduct a non-brokered private placement (the “Private Placement”) of up to 30,000,000 units (the “Units”) at a price of CAD$0.10 per Unit for total proceeds of up to CAD$3.000,000. Each Unit shall consist of one common share in the capital of the Company (a “Share”) and one half of a transferable share purchase warrant (a “Warrant”), each full Warrant entitling the holder thereof to acquire an additional Share for a period of two years from the date of issuance at a price of CAD$0.25 per Share. In the event that at any time after 4 months from the date of issuance the volume weighted average closing price per Share is more than CAD$0.50 for more than 15 consecutive trading days, the Company will be able to accelerate the Expiry Date of the Warrants to the date that is 30 days following the date on which the Company announces the accelerated Expiry Date of the Warrants by news release. The offering is being made available under existing securities exemptions to Accredited Investors, family, friends, and business associates of management as well as existing shareholders of the company. Qualified investors interested in participating are encouraged to contact the Company.
Resignation of Board Member
Mr. Arturo Bonillas has resigned from the Company’s Board of Directors for personal reasons. The Company wishes to thank Mr. Bonillas for his advice and guidance while serving the company as a member of the Board of Directors.
About Telson Mining Corporation
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, located in north-western Durango State, Mexico is currently under development and waiting for final funding to complete construction of the processing plant and related assets to produce concentrates in its own on-site mineral processing plant, with a designed capacity of at least 1,000 tonnes per day and subject to funding is targeting completion of construction during Q2 2020. Pre-production toll milling is underway with plans to process 3,000 to 5,000 tonnes of ore on a monthly basis until it’s own on-site 1,000 tpd processing plant is operational, where construction has advanced to approximately 70% completion.
Campo Morado is a polymetallic base metal mine with mining and milling equipment capable of producing up to 2,500 tonnes per day. Four months after purchasing Campo Morado, Telson brought the mine back into operation initiating preproduction in October 2017 and declared commercial production in May 2018, operating the mine continuously for 22 months until August 2019 when the project was put on care and maintenance as a result of declining zinc prices and community issues. With improving current conditions Telson is bringing the mine out of care and maintenance and will be reinitiating mining operations as soon as possible over the coming weeks.
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.
On Behalf of the Board of Directors
(signed) “Ralph Shearing”
Ralph Shearing, 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 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).
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 operations at Campo Morado; the ability to recommence outstanding payments to Nyrstar; 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 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; that recommencement of operations at Campo Morado will proceed as planned; that discussions with Nyrstar and the abeyance of any potential default proceedings will be completed in a timely manner and on reasonable terms, 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