Shares Issued: 37,896,616 Telson Resources Inc. Non-Brokered Private Placement
Telson Resources Inc. (TSX.V: TSN, OTCBB: SOHFF) Shares Issued: 37,896,616
TELSON RESOURCES INC. NON-BROKERED PRIVATE PLACEMENT
VANCOUVER, BRITISH COLUMBIA – July 18, 2013 – Telson Resources Inc. (TSX Venture - TSN) (“Telson” or the “Company”) announces that it intends to conduct a non-brokered private placement of up to 8,000,000 units of the Company. Each unit is priced at $0.05 per unit, resulting in gross proceeds of up to $400,000 when fully closed. Each unit is comprised of one common share of the Company and one share purchase warrant. Each share purchase warrant entitles the holder thereof to purchase one additional common share of the Company at $0.10 within two years of its date of issuance.
All securities issued under the non-brokered private placement are subject to a hold period expiring four months and one day after the closing date. Closing of the Private Placement is subject to approval of the TSX Venture Exchange.
Use of Proceeds
Proceeds will be used to fund its Mexican operations supporting its flagship Tahuehueto Project in Durango, Mexico and for general working capital.
Jocuixtita Silver Project
The Company also announces it has terminated the two Jocuixtita Option Agreements originally entered into and announced in a news release dated July 16, 2009 to explore and acquire 100% of 6 mining concessions together occupying 1,573 hectares in the State of Sinaloa, Mexico.
El Realito Project Update
The Company would also like to announce that after completing its due diligence on the El Realito property, (see news release dated April 12, 2013), it has decided to not proceed with the acquisition. The Company will continue to look for other potential projects of merit for potential acquisition.
About Telson Resources Inc.
Telson Resources Inc. is an exploration and development company strategically focused on gold, silver and base metals in the prolific Sierra Madre Belt of Mexico. The Company holds 99.4% of the outstanding shares of its Mexican subsidiary company that maintains 100% ownership in 9,081 hectare Tahuehueto Property, an advanced stage gold and base metal exploration and development project.
At its flagship Tahuehueto Project in Durango State, Mexico the Company has embarked on a program of pre-feasibility data collection. Past exploration efforts Tahuehueto lead to the delivery, on October 4, 2010, of a Preliminary Economic Assessment ("PEA") completed by Snowden Mining Industry Consultants Inc. Key findings from the report included:
| Summary of PEA Estimates | |
|---|---|
| Net cash flow | $US 184.2 million |
| Net present value (NPV) 5% discount | $US 109.6 million |
| Internal rate of return % | 31% |
| Payback period | 27 months |
| Mine life | 11 years |
| Maximum processing rate | 1,000,000 tonnes/annum |
| P T e l s o n R e s o u r c e s I n c . N e w s R e l e a s e – J u l y 1 8 , 2 0 1 3 | a g e 1 o f 2 |
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Capital and start-up costs $US 89.1 million
Note: Calculations based on a 3 year rolling average of metal prices at the end of Auguts 2010 Currency US$ Gold: 965.81, Silver: 15.38, Copper: 2.92, Lead: 0.95, Zinc: 0.88
The Tahuehueto Project is a classic epithermal system hosting multiple structures traced for up to six kilometers of strike length. Considerable upside exploration potential remains on the existing explored resource structures both down dip and along strike, as well as on numerous other unexplored mineralized structures known to occur on the property.
Qualified Persons
This press release was prepared under the supervision and review of Ralph Shearing, President and CEO of Telson Resources Inc., a Licensed Geologist, and Qualified Person as defined by NI 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS
(signed) “Ralph Shearing”
Ralph Shearing, Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release
WARNING: The Company relies upon litigation protection for "forward-looking" statements. This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of up-coming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Telson Resources Inc. relies upon litigation protection for forward-looking statements.
Contact:
Glen Sandwell, Communications Manager Tel: (604) 684-8071 Email: [email protected] Toll Free: 1-800-685-0576
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