Tinka Resources {TSX.V: TK} have arranged a brokered private placement for $10 million, at CAD 20c per share,on a best efforts basis.
Tinka Resources arranges $10-million placement
Dr. Graham Carman reports
TINKA ANNOUNCES $10 MILLION BROKERED PRIVATE PLACEMENT
Tinka Resources Ltd. {TSX.V: TK} has entered into an agreement with GMP Securities LP, which has agreed to act as agent for and on behalf of the company, on a best-efforts agency basis in connection with a proposed private placement offering of up to 50 million common shares of the company at a price of 20 cents per share for gross proceeds of up to $10-million. All shares to be issued pursuant to the offering will be subject to a four-month hold period under applicable securities laws in Canada.
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 general working capital and corporate purposes.
The offering is scheduled to close on or about Nov. 1, 2016, or such other date or dates as may be agreed to by the company and the agent, and is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
Certain insiders of the company may participate in the offering. The company has agreed to pay the agent a cash commission of 6 per cent of the gross proceeds raised under the offering and issue broker warrants equal to 6 per cent of the number of shares sold. Each such broker warrant will entitle the agent to purchase one common share at the issue price for a period of 24 months following the closing of the offering. The agent will not be paid a commission or receive broker warrants in respect of any shares sold to certain investors and those purchasing under the company’s president’s list.
About Tinka Resources Limited
Tinka is an exploration and development company with projects in Peru. Ayawilca has two separate inferred mineral resource zones of 18.8 million tonnes at 8.2 per cent zinc equivalent, and 5.4 million tonnes at 0.89 per cent tin equivalent, both open for expansion (news release of May 25, 2016). The Colquipucro silver deposit, located two kilometres north of the zinc zone, has indicated mineral resources of 2.9 million tonnes at 112 g/t Ag for 10.4 million ounces Ag and inferred mineral resources of 2.2 million tonnes at 105 g/t Ag for 7.5 million ounces Ag in higher-grade lenses within a lower-grade resource envelope of 7.4 million tonnes at 60 g/t Ag for 14.3 million ounces Ag (indicated) and 8.5 million tonnes at 48 g/t Ag for 13.2 million ounces Ag (inferred) (news release of Feb. 26, 2015).
Dr. Graham Carman, Tinka’s president and chief executive officer, is a qualified person as defined in National Instrument 43-101 and has reviewed and approved the scientific and technical disclosure contained in this press release.
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