Business
Telson Secures US$15 Million Loan Facility and Offtake Agreement with Trafigura and is Now Fully Funded to Finalize Mine Construction at Tahuehueto
(via TheNewswire) Vancouver, British Columbia / TheNewswire / December 18, 2017 ...
About this update from Luca Mining Corp
[{"type":"text","content":"Telson Secures US$15 Million Loan Facility and Offtake Agreement with Trafigura and is Now Fully Funded to Finalize Mine Construction at Tahuehueto(via TheNewswire)\n\n \nVancouver, British Columbia / TheNewswire / December 18, 2017\n\n\n \nHighlights:\n\n\n \n\n\n- Executed secured loan facility with Trafigura for US$15 million for Tahuehueto mine construction.\n\n\n\n- Funding enables construction of mineral processing facility, related mining facilities, plus infrastructure and underground development at Tahuehueto\n\n\n\n- Funds Available to the Company in Three Tranches According to Development Progress and certain conditions with first tranche of US$7.5Mn already received in Telson?s bank account.\n\n\n\n- The Offtake Agreements are for 100% production of zinc (Zn) and lead (Pb) concentrates with a minimum annual fixed tonnage, starting delivery in January 2018 and ongoing until December 2022\n\n\n\n\n \nTelson Resources Inc. (\"Telson\" or the \"Company\") (TSX Venture - TSN.V) is very pleased to announce it has entered into a Loan Facility and Offtake Agreement with Trafigura Mexico S.A. de C.V. (\"Trafigura\"), a market leader in the global commodities industry, to sell 100% of the lead and zinc concentrate produced at the Tahuehueto Mine from January 1st 2018 to December 31st 2022. Trafigura has provided Telson with a credit facility of US$15 million thereby securing the capital requirements to construct and operate an ongoing 1,000 tonne per day mining operation at Tahuehueto. The Signing Date was on December 7, 2017.\n\n\n \nKey Terms:\n\n \n\nUS$15 Million Loan Facility\n\n\n\n\n\n\n-Three-year term with twelve-month grace period followed with 24 repayment installments.\n\n\n\n-Loan Facility Matures on December 2020 with very competitive interest rates.\n\n\n\n-No hedging conditions \n\n\n\n-No equity based payments\n\n\n\n-US $ 15 Million available in three tranches as follows,\n\n\n\n\n\n\n\n-1st Tranche - US$7.5 million has been received by the Company\n\n\n\n-2nd Tranche - US$5.0 million will be available 4 months from the Signing Date and not later than 6 months after the Signing Date.* \n\n\n\n-3rd Tranche - US$2.5 million will be available 6 months from the Signing Date and not later than 9 months after the Signing Date.* \n\n\n\n \n\n\nOfftake Agreement\n\n\n\n\n\n\n-60-month term ending December 2022 for Ta...