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Tinka closes C$8.9mln first tranche of private placement

Monday, November 7, 2016 14:30
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(Before It's News)

Tinka Resources Ltd. (CVE:TK) on Monday closed the first tranche of a private placement, which was subsequently upsized with a second tranche, for gross proceeds of up to C$11mln.

Under the first tranche, the company issued 44,673,250 shares at an issue price of 20 cents per share for gross proceeds of C$8,934,650.

The second tranche of the offering for additional proceeds of up to $2,065,350 is expected to close on or about Nov. 15.

The company plans to use the net proceeds from the offering to finance exploration expenditures at the company’s Ayawilca project in Peru, as well as for other corporate purposes and general working capital.

“We are pleased to close the first tranche of the private placement financing, having received strong interest from quality institutional investors such as lead investor JPMorgan Asset Management (U.K.) Ltd. I wish to also thank the Sentient Group for their continued support of the company, along with several other existing shareholders,” said Dr. Graham Carman, president and chief executive officer of Tinka.

“The funds raised will enable the company to execute its exploration objectives in the short to medium term, by drilling 10,000 to 15,000 metres in the upcoming drill campaign at the Ayawilca property in Peru. This drill program will focus on testing the extents of the high-grade zinc and tin deposits already discovered at the property, as well as drill testing high-priority targets lying in close proximity to our existing resources which have never before been drilled. We look forward to an exciting year ahead,” he added.

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 offering. Pursuant to the first tranche, Sentient IV purchased 11,146,920 shares under the offering for gross proceeds of $2,229,384, resulting in Sentient IV owning an aggregate of 43,291,143 common shares of the company following the closing of the first tranche, or approximately 22.3% of the company’s basic shares outstanding and approximately 21.8 per cent fully diluted. In addition, certain directors of the company participated in the offering and purchased an aggregate of 300,000 shares under the offering for aggregate gross proceeds to the company of $60,000.

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