Tinka Resources Ltd (TSXV & BVL: TK | OTCQB: TKRFF) has closed its strategic private placement financing agreement with Nexa and Buenaventura. Under the private placement, the company has issued an aggregate of 50,563,210 common shares of the company at an issue price of C$0.22 per common share for gross proceeds to the company of C$11.12M.
Pursuant to the private placement, Nexa subscribed for 40,792,541 common shares, resulting in it becoming a new insider of Tinka, holding a total of 71,343,053 common shares or 18.2% of the outstanding common shares on a non-diluted basis.
Furthermore, Buenaventura subscribed for 9,770,669 common shares in the private placement at the issue price. Pursuant to the closing of the private placement, Buenaventura now holds 75,614,289 common shares of Tinka or approximately 19.3% of the outstanding common shares of the company on a non-diluted basis.
The proceeds of the private placement will be used for development of the company’s Ayawilca project (including significant exploration and infill drilling programs, metallurgical programs, and other technical and environmental studies), the continued early-stage exploration of the Silvia project, and for working capital and general corporate purposes. No finder’s fees or commissions are payable on the private placement.
The President and CEO of Tinka, Dr. Graham Carman, stated: “The closing of the C$11M Private placement financing with Nexa and Buenaventura will enable the company to accelerate its work programs and advance Ayawilca as quickly as possible towards development. I wish to thank Nexa and Buenaventura for their support of the company and a shared vision for Ayawilca to become the next major zinc mine in Peru. Tinka will immediately commence a resource definition drill program in June 2022 targeting a significant increase in measured and indicated resources, together with some step-out exploration holes. We look forward to announcing more details of the upcoming programs.”
For further information please visit: https://www.tinkaresources.com/