Telson Receives US$2 Million From Empress RoyaltyBy Paloma Duran | Wed, 05/05/2021 - 15:49
Telson Mining Corporation (Telson) announced its 2020 financial results and that it has received part of the US$5 million silver stream agreement with Empress Royalty Corp (Empress) for the development of its Tahuehueto project.
Telson has already received US$2 million from its stream agreement, which is part of a US$25 million provided by Empress, Accendo Banco (Accendo) and Endeavour Financial. This financing included an equity private placement of US$8 million, an Empress silver stream of US$5 million and a debt facility of US$12 million with Accendo, which is expected to be closed in May.
Once the initial payment of the first tranche of the agreement is completed, the remaining US$3 million will be funded with the closing of Accendo debt facility and the restructuring of Telson’s loans, reported Proactive.
Telson's Tahuehueto mining project is in Durango and has a 60 percent completed construction. Once the US$25 million funding package is received, Telson expects to finish the construction of its processing facility and other infrastructure works to initiate production at Tahuehueto. The CAPEX investment required to complete construction and start using the mine is US$15.4 million; US$12.6 million for equipment and construction and US$2.8 million to support operations until the mine has positive cash flow, reported MBN. Telson expects to begin pre-production in late 2021 and have full production capacity during 1Q22.
Telson also released its 2020 financial and operating results, which included revenues that increased by 30 percent, mining operating loss was reduced by 43 percent and the net loss decreased by 60 percent.
The company released excellent operating results as its mining production increased by 50 percent at an average rate per quarter, plant production increased by 30 percent, and zinc concentrates also increased around 30 percent.
The company also released Campo Morado mine figures. The mine is an operating polymetallic base metal mine that is currently estimated to be the sixth largest zinc producer in Mexico. During 2020 it achieved gross sales totaling US$4.4 million; 27,864 tons of zinc and 5,926 tons of lead concentrates were sold; the mineral processed was 454,624 tons; 343,141 tons were mined; and 28,031 tons of zinc concentrate and 5,794 of lead concentrate were produced.
Telson recently announced the purchase of the Variable Purchase Price Royalty (VPP Royalty) for its Campo Morado mine, which will allow the company to increase production. "The closing of the VPP Royalty is a major positive step for Telson and the Campo Morado Mine and will increase revenue at Campo Morado on an ongoing basis,” said Ralph Shearing, Telson's President and CEO.