Telson Resources Inc. Initiates Activities for Restart of Mining Operations at Campo Morado and Closes Final Tranche of Private Placement

Vancouver, British Columbia, July 20, 2017 – Telson Resources Inc. (“Telson” or the “Company”) (TSX Venture – TSN.V) is pleased to announce that it has closed the final tranche of the private placement as announced in a press release dated June 14, 2017 and accordingly has issued 1,732,691 shares at 55 cents per share, and paid an additional US$700,000 to Nyrstar Mining which concludes all payments that were currently due under the agreement terms as summarized in the former referenced press release.
The funding was received from Estratégica Corporativa en Finanzas, a related party of the Company. The related party is a significant shareholder with a control position in the Company, for which the Company previously received shareholder consent in late 2015, in accordance with TSXV policy. The issuance of private placement securities to a ‘non-arms’ length party also constitutes a related-party transaction under  Multilateral Instrument 61-101 (“MI 61-101”). Because the Company’s shares trade only on the TSXV, the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and fits within an exemption from the minority approval requirements of Section 5.6 of MI 61-101.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s