Vancouver, British Columbia, March 6, 2017 – Telson Resources Inc. ("Telson" or the "Company") (TSX Venture – TSN.V) is pleased to announce that it has secured a USD $2 million credit line for leasing underground and surface mining equipment for mine development at its 100% owned Tahuehueto Project (the "Project") located in northern Durango State, Mexico.
This credit line has been secured with Caterpillar Credito SA De CV ER in the form of financial leasing that will require a down payment of 15% for new Cat surface equipment and 25% for new Cat underground equipment. The method of payment under the lease will consist of monthly payments of principal and interest with a term of 60 months for Cat surface equipment and 36 months for Cat underground equipment. These terms are valid up to November 30, 2017. Telson intends to use the leasing facility to acquire one 8 yd.? scoop tram, 40 tonne underground dump truck and 13.5 yd.? front end loader to support the mine development and future mining production. This equipment along with Telson's recently purchased used scoop tram will easily support the production estimated under the Company's recently released Pre-Feasibility's Study as well as allow for expansion possibilities under the first year production expansion plans to increase production towards 1000 tonnes per day during the first year of production.
Electrical Power Plant LOI – Recently, Telson's Mexican wholly owned Subsidiary signed a Letter of Intent (the "LOI") with ANAF Soluciones Estrategices SA De CC (ANAF) that outlines the terms and conditions that ANAF will conduct an engineering design and cost study to build and operate a gas powered electrical generation plant to supply the full electrical power requirement of the future Tahuehueto mine and milling facility. The LOI stipulates that ANAF will carry out the full engineering and cost evaluation to select the best equipment options. Upon completion of the studies, and entering into a formal agreement with the Company, ANAF will build the onsite electrical power generation pant, install related powerline infrastructure and will operate, supply, and maintain such plant and equipment selling power to the Company for an initial term of six years. To initiate the formal agreement it is contemplated that the Company would make an advance power purchase payment to ANAF of approximately USD $1 million.
"Assuming a positive engineering and cost study by ANAF and the formalizing of the anticipated agreement with this group, the plans for supplying the electrical power requirements necessary to commence mining operations at Tahuehueto will be complete and ANAF would commence construction of the power plant and electrical infrastructure on a schedule that aligns with our mine construction plans." comments Enrique Margalef, Vice President of Telson
Tepehuanes Property Secured – The Company is pleased to report that it has secured a property in Tepehuanes, Durango, Mexico that will be used as a staging area to receive and refurbish where necessary, the recently purchased Tahuehueto Mineral Processing Plant, which equipment will be transported over the next several weeks from its existing location to this property site in preparation for future transport to the Tahuehueto mine development site. (See news release dated February 16, 2017).
Tahuehueto On Site Mine Development – At the Tahuehueto mine development site, work is continuing on the development of the 5m X 5m haulage level portal crossing the El Creston vein structure and ending for the time being at 168 m. In order to provide proper ventilation in the haulage portal a development raise has been established to the Level 16 portal. The mining contractor is now driving development along the Creston vein to prepare for the collection of a second large industrial scale bulk sample which the Company plans to start collecting after the second week of March 2017. This bulk sample will be transported for processing to the Andes Toll Mill located near Guanacevi, Durango and processing of the bulk sample is expected to commence in early April. The Company intends to produce lead, zinc and copper concentrates with this bulk sample as the copper content at this elevation on the Creston vein is sufficient to justify copper recovery.
PDAC Attendance – Finally, the Company wishes to inform shareholders and investors that it is attending the Toronto PDAC mining conference from Sunday, March 5 through Wednesday, March 8. Company representatives will be attending Booth number 3033 and available to present the Company, field investor questions and discuss financing opportunities from interested PDAC attendees.
On behalf of the board of directors
(signed) "Ralph Shearing"
Ralph Shearing, President