Tinka Resources Limited (TSX-V & BVL: TK) (OTCPK: TKRFF) is pleased to announce that it has closed its previously announced bought deal financing, including the exercise in full of the underwriters’ over-allotment option. A total of 16,790,000 units of Tinka were sold at a price of C$0.48 per Unit for aggregate gross proceeds of C$8,059,200. Each Unit consisted of one common share and one-half of a common share purchase warrant. Each Warrant entitles the holder to acquire one common share of the Company at a price of C$0.75 at any time prior to April 4, 2019.
The net proceeds from the Offering will be used to fund exploration expenditures and related costs related to the Phase 1 recommended work program at the Company’s Ayawilca Project in Peru, for further exploratory drilling at the Ayawilca Project as well as for general working capital and corporate purposes.
The Offering was completed through a syndicate of underwriters led by GMP Securities L.P. and including Canaccord Genuity Corp., Beacon Securities Limited, CIBC World Markets Inc., and Industrial Alliance Securities Inc. (collectively, the “Underwriters”). The Underwriters received a cash commission equal to 6% of the gross proceeds of the Offering.
The Offering was completed by way of a short form prospectus which was filed in all the provinces of Canada, except Québec. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Concurrent with the Offering, the Company is undertaking a non-brokered private placement of up to 14,000,000 Units at the Offering Price for additional gross proceeds of up to C$6,720,000 to i) certain existing shareholders pursuant to the exercise of pre-emptive rights, and ii) certain Peruvian and other purchasers. The Private Placement is expected to close on or about April 6, 2018.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, a U.S. Person (as defined in Regulation S under the U.S. Securities Act) absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or to, or for the account or benefit of, any U.S. Person, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Tinka Resources Limited
Tinka is an exploration and development company with its flagship property being the 100%-owned Ayawilca carbonate replacement deposit (CRD) in the zinc-lead-silver belt of central Peru, 200 kilometres northeast of Lima. The Ayawilca Zinc Zone has an Inferred Mineral Resource of 42.7Mt at 6.0% zinc, 0.2% lead, 17 g/t silver & 79 g/t indium, and a Tin Zone Inferred Mineral Resource of 10.5 Mt at 0.6 % tin, 0.2% copper & 12 g/t silver (November 2017).
The scientific and technical disclosure in this news release has been reviewed by Dr. Graham Carman, President and CEO of the Company who is a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
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We acknowledge the [financial] support of the Government of Canada.