Mexico-focused Telson Mining Corporation (CVE:TSN) (OTCMKTS:SOHFF) told investors it expects to resume mining and processing at its Campo Morado mine in the middle of next month (January 2020) as it announced plans for a C$3 million financing.
The mine is a polymetallic base metal project in the state of Guerrero, capable of producing up to 2,500 tonnes per day.
Pre-production started there in October 2017 and commercial production was declared in May the following year. Telson then operated the mine continuously for 22 months until August 2019 when operations were stopped as a result of declining zinc prices.
Power has now been restored at Campo Morado, though three weeks later than expected, and now there is access to the El Largo zone, where there is approximately 50,000 tons of broken mineralized material available for transport to the mill, said Telson in a statement.
Meanwhile, at the mill, another 20,000 tons of previously mined transported mineralized material is available to begin processing, it added.
"Personnel are advancing on the process of checking, servicing, and repairing as necessary, all mill processing equipment, mobile mining equipment, underground mining equipment, ventilation systems and safety equipment ...," the company said.
Telson also revealed it plans a non-brokered private placing of up to 30 million units at C$0.10 a throw for total proceeds of up to C$3 million.
Each unit consists of a company share and one half of a share purchase warrant. Each full warrant allows the holder to buy a further share for two years from the date of issue for C$0.25 each.
Also in the statement, Telson said Arturo Bonillas had resigned as a director for personal reasons. The firm thanked him for his advice and guidance while serving the company as a member of the board.
Shares were unchanged at C$0.12 in Toronto.
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