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Tinka announces closing of first tranche of private placement for C$5.77 million

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Tinka announces closing of first tranche of private placement for C$5.77 million

 

 

 

 

 

Tinka Resources Limited (TSX-V & BVL: TK) (OTCPK: TKRFF) is pleased to announce that it has closed the first tranche of the previously announced non-brokered private placement financing of units of the Company. Under the First Tranche, the Company issued 12,022,284 Units at an issue price of C$0.48 per Unit for aggregate gross proceeds of C$5,770,696.  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 6, 2019.  The Issue Price for Units in the Placement is the same as for the Company’s bought deal financing which closed on April 4, 2018, and raised gross proceeds of C$8,059,200. 

 

 

The Company plans to use the net proceeds from the Placement to fund exploration expenditures at the Company’s Ayawilca Project in Peru, as well as for other corporate purposes and general working capital.

 

 

Dr. Graham Carman, President and CEO of Tinka states: “We are pleased to close the first tranche of the private placement financing. I wish to thank Sentient Equity Partners for their continued support of the Company, along with several other existing shareholders, and those that have participated in the president’s list. I would also like to welcome several Peruvian investors to the Tinka shareholder register for the first time.” 

 

 

“The funds raised are anticipated to enable the Company to execute its exploration objectives at the Ayawilca zinc project in Peru over the next 12 to 18 months. During 2018 we are planning up to 15,000 metres of step-out drilling at the Ayawilca project, targeting additional zinc resources at the Zone 3, Valley, and extensions to South and West Ayawilca areas. We anticipate updating the Mineral Resources and completing a Preliminary Economic Assessment during the second half of 2018. Two drill rigs are currently operating on site. I look forward to updating our shareholders as the drill results become available.”

 

 

As part of the First Tranche, Sentient Global Resources Fund IV, LP an Insider of the Company, has exercised its pre-existing participation rights in respect of the Placement. Pursuant to the First Tranche, Sentient IV purchased 7,322,500 Units at the Issue Price for gross proceeds of C$3,514,800, resulting in Sentient IV owning an aggregate of 62,678,765 common shares of the Company following the closing of the First Tranche or approximately 24.7% of the Company’s basic shares outstanding, and approximately 23.9% fully diluted.

 

 

Participation by Insiders of the Company in the Placement is considered a “related party transaction” pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insiders’ participation in the Placement in reliance of sections 5.5(b) and 5.7(a) of MI 61-101.

 

 

All securities issued pursuant to the Placement on the date hereof are subject to a four-month hold period under applicable securities laws in Canada expiring on August 7, 2018.

 

 

The Company paid a cash commission of C$39,191 to Kallpa Securities of Peru on a portion of the Placement. No other commissions were paid pursuant to the Placement.

 

 

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 (for further information, refer to Tinka’s press release dated November 8, 2017).

 

 

The scientific and technical disclosure in this news release has been reviewed and approved 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.

 

Posted April 9, 2018

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