Telson Resources Inc. has signed a term sheet of a loan facility and offtake agreement with Trafigura Mexico S.A. de C.V., a market leader in the global commodities industry, to sell 100% of the lead and zinc concentrate produced at the Tahuehueto mine from 1 January 2018 to 31 December 2022.
Trafigura is to provide Telson with a credit facility of US$15 million upon signing formal agreements, thereby securing the bulk of the capital requirements to construct and operate an ongoing 1000 tpd mining operation at Tahuehueto.
Although Telson cannot guarantee the completion and signature of final contacts, negotiations have reached fully mutual agreement terms and the parties have signed a term sheet providing comfort to both parties to conclude and execute final contracts which are being currently drafted and are expected to be signed during the next couple of weeks.