Published: February 25, 2021 |

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Telson Mining Corporation entered into a $25 million funding agreement that will see the company complete the construction of its Tahuehueto gold operation in Mexico.

Capital expenditure investment was required to complete Tahuehueto mine construction and commissioning of the project is estimated at $15.4 million. This includes $12.6 million for equipment and construction including a 15 percent contingency, plus $2.8 million of working capital to support the operations until the mine has achieved positive cash flow.  Work on the project will begin immediately upon closing the non-brokered private placement that forms part of the financing. In addition, the Accendo Syndicate members are investing by way of debt, a silver stream, and equity

“This funding package now allows Telson to immediately reinitiate construction at the Tahuehueto mine site after which we expect to rapidly advance construction targeting to commence initial pre-production within 10 to 12 months and full-scale production 12 to14 months after funding,” said Ralph Shearing, president and CEO.

“Over the past several months, we have partnered with Telson and been able to witness and validate first-hand that Tahuehueto is one of the premier gold assets in Mexico, with an excellent exploration upside. We are excited to be able to provide this full package of growth capital to Telson and look forward to supporting the team as the business grows,” said Accendo CEO Javier Reyes, Speaking on behalf of the Syndicate.

Strengthening of Telson Management Team

As part of the agreement, Accendo Syndicate will appoint three new directors to Telson’s board of directors, as well as a chief operating officer to the executive team. The firm said that David Rhodes, managing director at Endeavour Financial, will be appointed director and chairman, while veteran mining engineer Armando Alexandri will join Telson as COO.

David Rhodes is the managing director of Endeavour Financial.  His experience in the natural resource business spans more than thirty years, having arranged, structured, and advised on over $10 billion of resource related projects around the world. Rhodes’ career prior to joining Endeavour was at Standard Bank, Barclays Capital, and Royal Bank of Scotland. Rhodes has a BSc (Hons) in Financial Services. Endeavour is one of the top global mining financial investment banks, with an award-winning track record of success in the mining industry, specializing in arranging multi-sourced funding solutions for development companies. Endeavour additionally has an asset management and insurance business.

Armando Alexandri is a mining engineer with more than 40 years of experience in the mining industry, mostly in Mexico but also in Peru, Ecuador, and Chile. He has designed, built, and operated mines and mills in Chihuahua, Guerrero, Guanajuato, Nuevo Leon, Coahuila, Sonora, Oaxaca and elsewhere. He was responsible for growing operations at the Bolivar mine in Chihuahua, Impact Silver operations in Guerrero, and at the Nukay operations in Guerrero. He has served as the chief operating officer for several companies, responsible for the design and optimization of processes and operations at various mines and mills throughout Mexico. He currently serves as COO of Impact Silver and was the president of the American Institute of Mining Engineers (Mexico) in 1999-2000.

“I welcome the appointment of David Rhodes to our board of directors which will further strengthen our board and am excited to gain the vast mill building and operating experience of Armando Alexandri as the company’s new COO,” said Shearing.

About Telson Mining
Telson Mining Corporation is a Canadian-based junior resource company with two Mexican gold, silver and base metal mining projects. Telson’s Tahuehueto project located in Durango, Mexico is currently in pre-production at approximately 200 tonnes per day utilizing a toll mill for processing and has entered a construction phase with a timeline to be producing on site in its own mineral processing plant capable of milling in 2020. Telson’s 100 percent owned Campo Morado mine located in Guerrero, Mexico was placed into care and maintenance in August 2019 due to a number of factors including the substantial decline in zinc prices which negatively affect the mine’s profitability. With improving conditions Telson brought the mine out of care and maintenance and reinitiated mining and milling operations during January 2020.

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