Tinka Resources {TSX.V: TK}
Has rather surprisingly announced a 48c bought deal financing for 14.6 million units of the company at a price of 48 cents per unit for aggregate gross proceeds to the company of $7,008,000
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Map of Ayawilca showing the previous resource numbers
TINKA ANNOUNCES $7,008,000 BOUGHT DEAL FINANCING
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Tinka Resources Ltd. has entered into an agreement with a syndicate of underwriters led by GMP Securities LP pursuant to which the underwriters will purchase, on a bought-deal basis, 14.6 million units of the company at a price of 48 cents per unit for aggregate gross proceeds to the company of $7,008,000. Each unit will consist of one common share and one-half of a common share purchase warrant. Each warrant will entitle the holder to acquire one common share of the company at a price of 75 cents for a period of 12 months following the closing date (as hereinafter defined).
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The company has agreed to grant the underwriters an overallotment option to purchase up to an additional 2.19 million units at the offering price, exercisable in whole or in part, at any time and from time to time for a period of 30 days from and including the closing of the offering to cover overallotments, if any, and for market stabilization purposes. If this option is exercised in full, an additional $1,051,200 in gross proceeds will be raised pursuant to the offering and the aggregate gross proceeds of the offering will be $8,059,200.
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Concurrent with the offering, the company will undertake a non-brokered private placement of up to 12.5 million units at the offering price for additional gross proceeds of up to $6-million to certain existing shareholders pursuant to the exercise of pre-emptive rights, and certain Peruvian and other purchasers.
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The net proceeds from the offering and the private placement will be used to finance exploration expenditures at the company’s Ayawilca project in Peru, as well as for general working capital and corporate purposes.
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The units under the offering will be offered by way of a short-form prospectus to be filed in all the provinces of Canada, except Quebec. The units will also be sold to U.S. buyers on a private placement basis pursuant to an exemption from the registration requirements in Rule 144A of the U.S. Securities Act of 1933, as amended, and other jurisdictions outside of Canada and the United States provided that no prospectus filing or comparable obligation arises.
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The offering is scheduled to close on or about April 4, 2018, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals for the offering including the approval of the TSX Venture Exchange and the securities regulatory authorities.
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About Tinka Resources Ltd.
Tinka is an exploration and development company with its flagship property being the 100-per-cent-owned Ayawilca carbonate replacement deposit (CRD) in the zinc-lead-silver belt of central Peru, 200 kilometres northeast of Lima. The Ayawilca zinc zone inferred mineral resource estimate now consists of 42.7 million tonnes at 6.0 per cent zinc, 0.2 per cent lead, 17 grams per tonne silver and 79 grams per tonne indium, and a tin zone inferred mineral resource of 10.5 million tonnes at 0.63 per cent tin, 0.23 per cent copper and 12 g/t silver.
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The scientific and technical disclosure in this news release has been reviewed by Dr. Graham Carman, president and chief executive officer of the company, who is a qualified person as defined by National Instrument 43-101 — Standards of Disclosure for Mineral Projects.