Tinka Resources Limited (TSX-V:TK) announces that further to its news release of April 17, 2014, the Company has closed the first tranche of its non-brokered private placement financing of up to 16,509,090 units at a price of $0.275 per Unit for gross proceeds of $4.54 million.
Under the First Tranche, the Company has issued 1,818,182 Units to Sentient Global Resources Fund IV, LP in exchange for gross proceeds of $500,000. Each Unit consists of one common share and one half of one common share purchase warrant. Each whole warrant entitles the holder to purchase one common share of the Company at an exercise price of $0.365 per common share until May 1, 2016. The Securities issued under the First Tranche have a four-month hold period expiring on September 2nd, 2014.
The Company will use the proceeds from the First Tranche for working capital purposes.
The First Tranche closing is part of a series of transactions under the Arrangement announced by the Company on April 17, 2014, through a joint news release with Darwin Resources Limited. Under the Arrangement, the Company has agreed to acquire all of the outstanding shares of Darwin in exchange for 6,131,725 common shares of the Company and to undertake the Private Placement. Sentient will subscribe, subject to certain conditions, for a total of 12,872,727 units in the Private Placement.
It is expected that the second tranche of the Private Placement will close concurrently with the closing of the Arrangement which is anticipated to occur ten days after receipt of Darwin shareholder approval. In addition to shareholder approval, the Arrangement is also subject to receipt of court and regulatory approvals by July 31, 2014.
The net proceeds from the second tranche will be used for conducting exploration and resource development work on the Company’s Ayawilca and Colquipucro zinc-silver-lead projects and the combined exploration portfolio with Darwin and for general working capital purposes.
This announcement is for informational purposes only and does not constitute an offer to purchase, a solicitation of an offer to sell the shares or a solicitation of a proxy.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Tinka Resources Limited
Tinka is a junior resource acquisition and exploration company. Tinka’s focus is on its 100% owned Colquipucro and Ayawilca projects located in the highly mineralized zinc-silver-lead belt of Central Peru.
About Darwin Resources Corp.
Darwin is a resource acquisition and development company focussing on Peru. Darwin has an option to acquire 100% of the Suriloma epithermal gold property in the Department of La Libertad.
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