Telson Signs Term Sheet for Loan Facility and Offtake Agreement with Trafigura for up to US$15 Million To Finalize Mine Construction at Tahuehueto.
Telson Resources Inc.
TSX.V: TSN OTCBB: SOHFF
Shares Issued: 107,071,371
Page 1 of 3
Telson Signs Term Sheet for Loan Facility and Offtake Agreement with Trafigura
for up to US$15 Million To Finalize Mine Construction at Tahuehueto.
Vancouver, British Columbia, Monday October 30, 2017.
Highlights:
Executed terms sheet for loan facility with Trafigura for up to US$15 million for mine construction.
Funding enables construction of mineral processing facility, re lated mining facilities, plus
infrastructure and underground development at Tahuehueto
Funds Available to the Company in Three Tranches According to Development Progress and certain
conditions with first tranche within 30 days of signing formal agreements.
The Offtake Terms are for 100% production of zinc and lead conc entrates with a minimum fixed
tonnage, starting delivery in January 2018 and ongoing until December 2022
Telson Resources Inc. ("Telson" or the "Company") (TSX Venture – TSN.V) is very pleased to announce it has
signed a term sheet of a Loan Facility and Offtake Agreement with Trafigura Mexico S.A. de C.V. (“Trafigura”), a
market leader in the global co mmodities industry, to sell 100% of the lead and zinc concentrate produced at the
Tahuehueto Mine from January 1st 2018 to December 31st 2022. Trafigura will provide Telson with a credit facility
of US$15 million upon signing formal agreements, thereby securing the bulk of the capital requirements to construct
and operate an ongoing 1,000 tonne per day mining operation at Tahuehueto.
Although Telson cannot guarantee the completion and signature of final contracts, negotiations have reached fully
mutual agreement terms and the parties have signed a term sheet providing comfort to both parties to conclude and
execute final contracts which are being currently drafted and a re expected to be signed during the next couple of
weeks.
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 mining company produc ing gold, silver and base metal from its two
Telson Resources Inc.
TSX.V: TSN OTCBB: SOHFF
Shares Issued: 107,071,371
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Mexican Mine Projects. Telson's Tahuehueto Project, located in north-western Durango State, Mexico and its
recently acquired Campo Morado Mine in Guerrero, Mexico are bot h polymetallic deposits containing significant
gold, silver, lead, zinc and copper. Telson is currently mining and procession ore at its 100% owned Campo Morado
Mine at a rate of approximately 1,400 tonnes per day and at its 100% owned Tahuehueto Mine Project at a rate of
approximately 150 tonnes per day and direct shipping Tahuehueto preproduction ore to a toll mill for processing
off-site. By securing the funding outlined in this Press Release, Telson will initiate the construction of a commercial
mining operation on its Tahuehueto project, with an expected ti meline to be completed and operational during the
summer of 2018.
Visit: www.telsonresources.com
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; 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 va riations 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 explorati on, development, environmen tal and other objectives
concerning the Campo Morado Mine and the Tahuehueto Project can be achieved, the continuity of the price of
gold and other metals, economic and po litical conditions and operations. Forwar d-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 Informati on. 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, read ers 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
Telson Resources Inc.
TSX.V: TSN OTCBB: SOHFF
Shares Issued: 107,071,371
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revisions to Forward-Looking Informati on 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