The company last month pivoted from base metals to gold, mothballing its Campo Morado base metals mine in Mexico for economic and community relations reasons, to focus on completing its 70%-finished Tahuehueto project in an improving gold market. 

The loan is subject to various conditions, including Telson raising at least $5 million in additional funds.

"Once the funding outlined above is secured, Telson estimates that it can complete construction of its flagship Tahuehueto gold mine project within six months and thereby take advantage of the increasing interest in the gold market sector," the company said.

President Ralph Shearing and CEO Jose Antonio Berlanga planned to attend next week's Beaver Creek Precious Metals Summit to continue fundraising efforts.

Telson's 11th toll milling campaign is underway and it intends to continue delivering ore to the Atocha mill throughout 2019, aiming for 3,000-5,000 tonnes a month until it has finished construction of its Tahuehueto 1,000tpd mining facility.

Telson shares traded as high as C63c a year ago and fell to 17c last month.

They rose about 7% yesterday to 23c to capitalise Telson at $32 million (US$24 million).