Telson Mining Corporation: Telson Negotiates Escorfin Loan Restructure
Telson" or the "
Company") announces that as part of its debt restructuring initiative it has finalized terms on the first of several of its loan agreements to be restructured.
Telson will be restructuring debt owed to Estrategica Corporativa en Finanzas, S.A.P.I de C.V. ("Escorfin") that was originally issued under a Mexican Peso line of credit agreement dated July 22, 2016. As previously disclosed Telson was not able to meet its contractual repayment obligations to Escorfin and therefore, is in default on the line of credit balance in the equivalent amount of approximately USD $3,100,000, (MXP $64,701,921) including principal and interest. The debt is proposed to be restructured by converting the Mexican Peso balance into USD $ at current exchange rates. New restructured terms include interest at 10% per annum, with a 36-month term of repayment and a 12-month grace period on both principal and interest. In consideration of the loan restructuring of this debt, the Company has agreed to issue to Escorfin, 500,000 bonus shares and 1,500,000 bonus warrants, with each bonus warrant exercisable within a period of four years at a price of C$0.475, the closing price of Telson shares on April 22, 2021.