Telson Closes Non-Brokered Private Placement for Gross Proceeds of $10.08 Million
Telson Mining Corporation
1000 – 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
TSX.V: TSN
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Telson Closes Non-Brokered Private Placement for Gross Proceeds of $10.08 Million
Vancouver, British Columbia, March 30, 2021
Telson Mining Corporation (“Telson” or the “Company” (TSX-V: TSN; OTC Pink: SOHFF; Frankfurt: TSGN) is pleased
to announce that it has closed the non‐brokered private placement (the “Private Placement”) originally announced
on February 23, 2021.
"We are very please to deliver this exciting news to Telson shareholders and investors." States Ralph Shearing, President
& CEO. "Closing this private placement as the first tranche of the Accendo Syndicate recently announced US $25 million
funding package now allows us to immediately reinitiate construction at Tahuehueto where Telson is targeting initial gold
production near the end of 2021. We thank our funding partners, Accendo Banco, Endeavour Financial and Empress
Royalty as well our concentrate off -taker and lenders for their cooperation and assistance in our efforts to close this
private placement.”
The Company issued 50,400,000 units (each, a “Unit”) of the Company at a price of $0. 20 per Unit for aggregate
gross proceeds of $10,080,000. Each Unit is comprised of one common share (a “ Common Share”) and one-half
of one common share purchase warrant (each whole such warrant, a “Warrant”). Each Warrant entitles the holder
thereof to purchase one additional Common Share of the Company at a price of $0.30 per Common Share within
24 months from March 29, 2021 (the “Closing Date”). All securities issued under the Private Placement are subject
to a hold period expiring four months and one day after the Closing Date. Total issued and outstanding Common
Shares of the Company after completion of the Private Placement is 236,069,954.
In accordance with applicable securities laws and the policies of the TSX Ve nture Exchange (the “Exchange”), the
Company paid a total of $ 418,590 in cash as finder’s fees to certain finders in connection with the Private
Placement.
This press release is also being disseminated as required by National Instrument 62‐103 – The Early Warning System
and Related Take Over Bids and Insider Reporting Issues in connection with the filing of an early warning report (the
“Early Warning Report ”) regarding the acquisition of securities of the Company by Estratégica Corporativa en
Finanzas, S.A.P.I. de C.V. (“Estrategica”) of Mexico. Estratégica acquired 500,000 Common Shares of the Company
at a price of $0.20 per Common Share and Warrants to acquire an additional 250,000 Common Shares at a price
of $0.30 per Warrant under the Private Placement.
Prior to the Private Placement, Estratégica beneficially owned 36,815,560 Common Shares. Accordingly,
Estratégica beneficially owns an aggregate of 37,315,560 Common Shares of the Company, representing
approximately 15.81% of the 236,069,954 issued and outstanding Common Shares of the Company on an
undiluted basis and approximately 17.17% (41,198,658 Common Shares) of the Company’s 239,953,052 issued
and outstanding Common Shares, on a partially diluted basis, assuming exercise of all warrants held by
Estratégica.
Telson Mining Corporation
1000 – 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
TSX.V: TSN
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As previously reported in the Early Warning Report filed by Estratégica dated May 27, 2020, Roberto Guzman
Garcia (“Guzman”) a director of Telson, is the controlling mind of Estratégica, and Estratégica has previously acted
jointly with Promotora de Sistemas de Information, S.A.P.I. de C.V. (“ Promotora”) and Macro Holdings &
Investments, LLC (“Macro”). Guzman, Promotora and Macro did not participate in the Private Placement. Together,
Estratégica, Guzman, Promotora and Macro (the “Joint Actors”) own and control 58,650,554 Common Shares and
3,883,098 warrants of Telson.
On a non -diluted basis, the Joint Actors own or control approximately 24.84% of the 236,069,954 issued and
outstanding Common Shares of Telson and, on a partially diluted basis (assuming exercise of warrants held by the
Joint Actors) the Joint Actors own or control approximately 26.06% of the Common Shares of Telson. Estratégica
acquired the securities for investment purposes and may increase or decrease its beneficial ownership or control
depending on market or other conditions.
A copy of the Early Warning Report for Estratégica can be found under the Company’s profile at www.SEDAR.com.
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 is located in north -western Durango State, Mexico where construction has
been advanced to an estimated 60% of completion. Upon closing of the recently announced US$25 million funding
package, Telson will have funding available to finish construction of its 1,000 tonne per day processing facility and
related mine infrastructure to initiate production of gold, silver, lead, and zinc in concentrates at Tahuehueto. The
Company is targeting initial production by end of 2021 and ramping up to full production capacity during Q1 2022.
Campo Morado is an operating polymetallic base metal mine with mining and milling equipment currently
producing at an average of approximately 2,150 tonnes per day and is currently estimated to be Mexico’s 6th
largest zinc producer.
Visit: www.telsonmining.com
On Behalf of the Board of Directors
(signed) “Ralph Shearing”
Ralph Shearing, P. Geol, 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 were 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).
Telson Mining Corporation
1000 – 1111 Melville Street
Vancouver, BC, V6E 3V6, Canada
TSX.V: TSN
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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; 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 an d 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 using 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 materia l 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; 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, p erformance, 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:
Glen Sandwell
Corporate Communications Manager
Tel: +1 (604) 684-8071