Business
Telson Secures US$5 Million Loan Facility and Offtake Agreement with Trafigura and is Now Fully Funded to Restart Operations at Campo Morado Mine
(via TheNewswire) Vancouver, British Columbia / TheNewswire / September 18 th , 2017...
About this update from Luca Mining Corp
[{"type":"text","content":"Telson Secures US$5 Million Loan Facility and Offtake Agreement with Trafigura and is Now Fully Funded to Restart Operations at Campo Morado Mine(via TheNewswire)\n \n \nVancouver, British Columbia / TheNewswire / September 18th, 2017 \n\n\n \nHighlights:\n\n\n \n\n\n- Executed loan facility with Trafigura in the amount of US$5 million for working capital \n\n\n\n- Full funding enables restart of mining and mineral processing at Campo Morado Mine\n\n\n\n- Full US$5 million has been received into Telson's bank account\n\n\n\n- The Offtake Agreements are for 100% production of zinc and lead concentrates with a minimum fixed tonnage, starting delivery in October 2017 and ongoing until December 2021\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 Agreements (the \"Agreements\") 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 Campo Morado Mine from the commencement of commercial production estimated during October 2017 and until December 2021. Trafigura has provided Telson with a credit facility of US$5 million thereby securing full working capital requirements to initiate the restart of continuous mining operations at the Campo Morado Mine.\n\n\nClick Image To View Full Size\n\n\n\n \n \nKey Terms:\n\n \n\nUS$5 Million Loan Facility\n\n\n\n\n\n\n- US$5 million received in Telson's bank account on September 15, 2017\n\n\n\n- Three-year term with six-month grace period followed with 30 repayment installments.\n\n\n\n- Loan Facility Matures on September 2020 and bears interest at rate equal to LIBOR (3M) +5%\n\n\n\n- No hedging conditions \n\n\n\n- No equity based payments\n\n\n\n\n\n\nOfftake Agreement\n\n\n\n\n\n\n- 51-month term ending December 2021 for Campo Morado Pb and Zn concentrate production\n\n\n\n- Fixed minimum tonnage to be sent during the offtake term\n\n\n\n- Very Competitive industry payable metal terms at LME and LBMA Spot prices\n\n\n\n- Access to prompt payments 5 days after delivery, providing excellent liquidity to the operation\n\n\n\n- Competitive transport charges\n\n\n\n\n \n \nTelson has provided industry standard security to Trafigura in the form of a corporate guarantee, a prom...