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Telson Closes Purchase of Nyrstar Variable Purchase Price Royalty at Campo Morado & Accelerates Construction at Tahuehueto
Telson Mining Corporation (TSXV: TSN) (OTC Pink: SOHFF) (FSE: TSGN) ("Telson" or the "Company")
is pleased to announce that the Company has closed the purchase of the
Nyrstar Campo Morado Variable Purchase Price Royalty (the "VPP Royalty). Details of the transaction were previously announced on February 23, 2021.
Telson has issued 14,600,000 shares at the negotiated price of C$0.345
per share, which was roughly a 64% premium to Telson's trading price as
of Feb 22, 2021, the date the parties executed the VPP Royalty
acquisition letter agreement.
Tahuehueto Update
Telson is also pleased to inform shareholders that last week construction work was accelerated at the Tahuehueto gold mine construction project where Telson is building a 1,000 tpd mining operation. Additional construction crews have arrived at the site and have re-commenced assembly work of the mineral processing facility and are preparing for the start of work on other major infrastructure initiatives such as the tailings storage facility, water pumping station and the water line which will supply the necessary water to sustain continuous milling and mining operations.
Tahuehueto capital expenditure ("CAPEX") investment required to complete mine construction and commissioning of the project is estimated at US$15.4 million. This includes US$12.6 million for equipment and construction including a 15% contingency, plus US$2.8 million of working capital to support the operations until the mine has achieved positive cash flow.
To date Telson, on March 30, 2021, closed a C$10,080,000 private placement and last week, on April 16, 2021 executed the Empress Silver Stream agreement that will provide an additional US $5 million in two tranches of capital to Tahuehueto construction. The final US $12 million Accendo Banco loan facility is in the late stages of documentation and expected to close in the coming weeks along with the restructuring of Telson outstanding loans with Trafigura and Nyrstar.
https://www.newsfilecorp.com/release/81695