Tinka Announces Closing of Upsized & Oversubscribed Second Tranche Private Placement Financing of C$2.4 Million

April 27th, 2018
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Vancouver, Canada – Tinka Resources Limited (“Tinka” or the “Company”) (TSXV& BVL: TK) (OTCPK: TKRFF) is pleased to announce that it has closed the second and final tranche (the “Second Tranche”) of its previously announced non-brokered private placement financing (the “Placement”) of units of the Company (the “Units”). Under the Second Tranche, the Company issued 5,020,000 Units at an issue price of C$0.48 per Unit (the “Issue Price”) for gross proceeds to the Company of C$2,409,600. The Second Tranche has accommodated the rights of International Finance Corporation (“IFC”) and Sentient Global Resources Fund IV, LP (“Sentient”), two existing shareholders of the Company, who exercised their existing contractual pre-emptive rights as a result of the Company’s public offering of units which closed on April 4, 2018 (the “Bought Deal”) and the first tranche of the private placement financing that closed on April 6, 2018 (the “First Tranche”). In aggregate, the Bought Deal, First Tranche and Second Tranche comprise of 33,832,284 Units for gross proceeds of C$16,239,496.

IFC, a member of the World Bank Group, acquired 3,950,000 Units under the Second Tranche at the Issue Price for gross proceeds to the Company of C$1,896,000. IFC now has control over 29,895,754 common shares or approximately 11.5% of the issued and outstanding common shares of Tinka, and 13.2% assuming the exercise of all of IFC’s 9,823,837 warrants on a fully diluted basis.

Sentient, who also participated in the First Tranche, acquired an additional 1,070,000 Units, under the Second Tranche, for gross proceeds to the Company of C$513,600 under the Second Tranche, to maintain its pro-rata share ownership interest in the Company. As a result, Sentient now controls over 63,748,765 common shares of the Company or approximately 24.7% of the issued and outstanding common shares of the Company, and 23.8% of assuming exercise of all of Sentient’s warrants, on a fully diluted basis.

The Company plans to use the net proceeds from the Second Tranche to fund exploration expenditures at the Company’s Ayawilca Project in Peru, as well as for other corporate purposes and general working capital. No commissions or finder’s fees were paid by Tinka in connection with the closing of the Second Tranche.

Dr. Graham Carman, President & CEO stated, “Tinka is very pleased to have the continued support of IFC and Sentient, and their participation in the Placement is a strong endorsement of the quality of our Project and management team. The Company continues to aggressively explore its 100% owned Ayawilca Project in Peru, which we believe is one of the most exciting pre-development zinc projects anywhere in the world. The Company is now fully funded to carry out its planned exploration programs for the next 18 months. Drilling has already been stepped up to three rigs, and we look forward to disclosing the results of the drill programs, and other planned work such as metallurgical tests, as results come to hand.”

IFC and Sentient are insiders of the Company, and their participation in the Placement is considered a “related party transaction” pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (“MI 61-101”). 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 Second Tranche are subject to a four-month hold period expiring on August 28, 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 (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.

On behalf of the Board,

Graham Carman

Dr. Graham Carman, President & CEO

Investor Information:
Rob Bruggeman 1.416.884.3556
Company Contact:
Mariana Bermudez, 1.604.699.0202

Certain information in this news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward-looking statements, including, but not limited to statements regarding the intended use of proceeds, undertaking and completing exploration objectives at the Ayawilca zinc project, and the completion of a preliminary economic assessment. Forward-looking statements are based on the beliefs and expectations of Tinka as well as assumptions made by and information currently available to Tinka's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, the anticipated use of proceeds of the Second Tranche, drilling results, the Company’s expectations regarding mineral resource calculations, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world metal markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, success of future development initiatives, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community agreements and relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Tinka believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Tinka disclaims any intent or obligation to update any forward-looking statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.