Telson Receives Conditional Approval for a US$12Mn Line of Credit from International Investment Bank to Finalize Tahuehueto Gold Mine Construction

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[{"type":"text","content":"Telson Receives Conditional Approval for a US$12Mn Line of Credit from International Investment Bank to Finalize Tahuehueto Gold Mine Construction(via TheNewswire)\n \n \nVancouver, British Columbia - TheNewswire - September 4, 2019 - Telson Mining Corporation (\"Telson\" or the \"Company\" (TSXV:TSN), (OTC:SOHFF), (Frankfurt-TSGN) (formerly SQ82)) is pleased to announce that it has received conditional approval for a US$12 million medium term loan from an International Investment Bank (\"Bank\") to finalize construction at Tahuehueto.\n\n \n \nHaving successfully completed technical, financial and commercial due diligence on Telson and its mining projects, an international lending banking institution has granted conditional approval to the credit facility outlined below. \n\n \n \nMaterial Terms of the Line of Credit;\n\n \n \n\n\n1.Facility Amount: US$12 Million \n\n\n\n2.Term: 36 months from the Closing Date. \n\n\n\n3.Grace Period: 12-months from Closing Date on principal repayments \n\n\n\n4.Repayment Schedule: Principal repayments begin after the 12-month Grace Period with 24 equal monthly repayments. \n\n\n\n5.Interest Rate: 12.5% per annum. \n\n\n\n6.Agent Warrants: 0.75 warrant per every US$1 raised for the total facility amount. One full warrant will be \n\n\n\n\n \nexercisable for 48 months from date of closing at an Exercise Price equal to a 22.5% premium on the lesser of \n\n\n \na) the 20 VWAP as quoted on the TSXV as of the date of the Closing date or \n\n\n \nb) C$0.34, the closing price of Telson as of April 26, 2019, the date of initial mandate entered into by the parties.\n\n\n \n\n\n7.Fees: \n\n\n\n\n\na.Origination Fee: 2% of the Facility Amount, to be paid to the Bank. \n\n\n\nb.Arrangement Fee: 2% for any amount of the Line of Credit to be syndicated by the Bank to third party lenders. \n\n\n\nc.Commitment Fee: 2% per annum on the available, but undrawn balance of the Facility Amount, payable quarterly in arrears. \n\n\n\n\n\n \n \nFinal approval, subject to satisfactory completion of conditions precedent, conditions subsequent and documentation materially as follows: \n\n \n \n\n\na)Completion by Telson of a minimum US$5.0 million additional funding, \n\n\n\nb)Satisfactory conclusion of the legal due diligence, (underway) and, \n\n\n\nc)Completion of agreements including loan agreements and security pledg...

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