Tinka Resources Ltd. (CVE:TK) said on Tuesday it has has closed the second and final tranche of its private placement offering of common shares, which was upsized for gross proceeds of C$11mln. The company also revealed that the International Finance Corp., a member of the World Bank supra-national, increased its stake to 14%.
Under the second tranche, the company issued 10,326,750 shares at an issue price of 20 cents per share for gross proceeds of C$2,065,350. The first tranche of the offering closed on Nov. 7, for gross proceeds to the company of C$8,934,650.
Two insiders of the company participated in the second tranche in connection with the exercise of pre-existing participation rights.
International Finance Corp. (IFC), purchased 7.75 million shares at the issue price for gross proceeds of C$1.55-million. IFC now has control over an aggregate of 28,680,232 common shares of Tinka, or approximately 14% of the issued and outstanding common shares of Tinka, and 20.1% assuming the exercise of all of IFC’s 15,697,674 warrants.
Sentient Global Resources Fund IV LP (Sentient IV), which also participated in the first tranche, purchased an additional 2,576,750 shares under the second tranche for gross proceeds of C$515,350, resulting in Sentient IV owning an aggregate of 45,867,893 common shares of the company following the closing of the second tranche, or approximately 22.4 per cent of the company’s basic shares outstanding, and 24.9% assuming the exercise of all of Sentient IV’s 6,976,744 warrants.
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. No commissions or finders’ fees were paid by Tinka in respect of the closing of the second tranche.
“We are pleased to close the second and final tranche of the offering, and wish to thank IFC and the Sentient Group for their continued support. We are looking forward to commencing our 10,000-to-15,000-metre drill campaign at the Ayawilca property within a matter of weeks,” said Dr. Graham Carman, president and chief executive officer of Tinka.
“This drill program will initially focus on drill testing the extensions of the high-grade zinc mineralization previously discovered at West and South Ayawilca, followed by the drill testing of new targets east and north of the existing resources at Zone 3 and Chaucha.”
Story by ProactiveInvestors