Telson Secures US$5 Million Loan Facility and Offtake Agreement with Trafigura and is Now Fully Funded to Restart Operations at Campo Morado Mine
Telson Resources Inc.
TSX.V: TSN OTCBB: SOHFF
Shares Issued: 104,696,098
Page 1 of 3
Telson Secures US$5 Million Loan Facility and Offtake Agreement with Trafigura
and is Now Fully Funded to Restart Operations at Campo Morado Mine
Vancouver, British Columbia, Monday September 18th, 2017.
Highlights:
Executed loan facility with Trafigura in the amount of US$5 million for working capital
Full funding enables restart of mining and mineral processing at Campo Morado Mine
Full US$5 million has been received into Telson´s bank account
The Offtake Agreements are for 100% production of zinc and lead concentrates with a minimum
fixed tonnage, starting delivery in October 2017 and ongoing until December 2021
Telson Resources Inc. ("Telson" or the "Company") (TSX Venture – TSN.V)
is very pleased to announce it has entered into a Loan Facility and Offtake
Agreements (the “Agreements”) with Trafigura Mexico S.A. de C.V .
(“Trafigura”), a market leader in the global commodities indust ry, to sell
100% of the lead and zinc concentrate produced at the Campo Morado Mine
from the commencement of commercial production estimated during
October 2017 and until December 2021. Trafigura has provided Telson with
a credit facility of US$5 million thereby securing full working capital
requirements to initiate the restart of continuous mining opera tions at the
Campo Morado Mine.
Key Terms:
US$5 Million Loan Facility
US$5 million received in Telson´s bank account on September 15, 2017
Three‐year term with six‐month grace period followed with 30 repayment installments.
Loan Facility Matures on September 2020 and bears interest at rate equal to LIBOR (3M) +5%
No hedging conditions
No equity based payments
Offtake Agreement
51‐month term ending December 2021 for Campo Morado Pb and Zn concentrate production
Fixed minimum tonnage to be sent during the offtake term
Very Competitive industry payable metal terms at LME and LBMA Spot prices
Access to prompt payments 5 days after delivery, providing excellent liquidity to the operation
Competitive transport charges
Telson has provided industry standard security to Trafigura in the form of a corporate guarantee, a promissory note
plus a pledge of the shares of Telson 100% owned subsidiary company Nyrstar Campo Morado, S.A. de C.V. The
extent of Telson’s liability to Trafigura within the Agreements under Mexican law is limited to the amount of the
offtake loan plus interest.
Telson Resources Inc.
TSX.V: TSN OTCBB: SOHFF
Shares Issued: 104,696,098
Page 2 of 3
Antonio Berlanga, CEO of Telson, states “We are very happy to be able to deliver to our shareholders this exciting
key milestone which has secured Telson not only the US$5 millio n
working capital we were seeking allowing Telson to commence ful l
mining operations at Campo Morado but also, very good concentrate sale
terms plus an experienced and professional funding partner reco gnized
worldwide as a leading commoditi es trader. This working capita l will
now allow us to finalize the mill clean up and refurbishment, t hat we
initiated immediately after acquiring this project, and commenc e full-
scale mining and mill processing in early October”. To view short video
of ball mill restart during operational testing – Sept 2017 <click here>.
Telson is currently mining underground on Campo Morado at approximately 500 tonnes per day and will, over the
next two weeks, add additional equipment and personnel to increase underground mining production toward 2,000
tonnes, or more, per day. In early October, the Company plans t o begin the mineral processing mill restart at a
planned rate of approximately 1 ,400 tonnes per day and will met hodically and steadily increase the mineral
processing mill throughput rate to a planned 2,000 tonnes per day within 6 to 12 months as milling techniques and
recoveries are perfected and subsequently increase production t o the ultimate capability of the mill which is
currently rated at 2,500 tonnes per day.
About Trafigura
Founded in 1993, Trafigura is one of the largest physical commo dities 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 compan y Puma Energy; global terminals, warehousing
and logistics operator Impala Terminals; Trafigura's Mining Gro up; 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. Trafig ura 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 resource development company advancing two gold, silver and base
metal projects towards production over the coming months of 2017 and 2018. Telson's Tahuehueto Project, located
in north-western Durango State, Mexico and its recently acquire d Campo Morado Mine in Guerrero, Mexico
purchased from Nyrstar Mining are both polymetallic deposits co ntaining significant gold, silver, lead, zinc and
copper. Telson is currently mini ng ore at Tahuehueto at a rate of approximately 150 tonnes per day and direct
shipping to a toll mill for processing off-site. By securing th e funding stated in this Press Release, Telson will
recommence mineral processing milling operations at Campo Morad o in early October while at the same time,
subject to additional financing, intends to continue the develo pment of its Tahuehueto Project through the mine
construction phase with an anticipated timeline to be processin g at the project site in its own mineral processing
facility during 2018.
Visit: www.telsonresources.com
Telson Resources Inc.
TSX.V: TSN OTCBB: SOHFF
Shares Issued: 104,696,098
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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 i n 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-L ooking Information”) within the meaning of applicable
Canadian securities laws. Forward Looking Information in cludes, 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 activ ities on the Company’s properties, such as production
rates and increases; success of explora tion, development and bulk sample processing activities; timing for the
restart of continuous mining operations at the Campo Mo rado Mine, 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 severa l material assumptions, including, but not limited to, that the current
exploration, development, environmental and other obj ectives 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 act ual results, performance or achievements of the Company to be materially
different from any future results, performance or achievem ents expressed or implied by the Forward-Looking
Information. There can be no assurance that Forward-Look ing 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 Inform ation. 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
Tel: +1 (604) 684-8071