Under the Private Placement, the Company has issued an aggregate of 50,563,210 common shares of the Company (the 'Common Shares') at an issue price of
Prior to the closing of the Private Placement,
Compania de Minas Buenaventura SAA ('Buenaventura'), an Insider of the Company, exercised its pre-existing participation rights on the same terms and conditions of the Private Placement. As a result, 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.
'We also welcome Mr.
Participation by Buenaventura in the Private Placement is considered a 'related party transaction' pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ('MI 61-101'). The Company is exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insider's participation in the Private Placement in reliance of sections 5.5(b) and 5.7(a) of MI 61-101.
All securities issued in connection with the Private Placement are subject to a statutory four-month hold period, expiring on
Contact:
Tel: 1.604.685.9316
Email: info@tinkaresources.com
About
Tinka is an exploration and development company with its flagship property being the 100%-owned Ayawilca zinc-silver-tin project in central
Forward Looking Statements
Certain information in this news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively 'forward-looking statements'). All statements, other than statements of historical fact are forward-looking statements. Forward-looking statements are based on the beliefs and expectations of Tinka as well as assumptions made by and information currently available to Tinka's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations: the Company's expectations regarding the Private Placement use of proceeds; final approval of the Private Placement by TSXV; timing of planned work programs and results varying from expectations; delay in obtaining results; changes in equity markets; uncertainties relating to the availability and costs of financing needed in the future; equipment failure, unexpected geological conditions; imprecision in resource estimates or metal recoveries; success of future development initiatives; competition and operating performance; environmental and safety risks; the Company's expectations regarding the Ayawilca Project PEA; the political environment in which the Company operates continuing to support the development and operation of mining projects; risks related to negative publicity with respect to the Company or the mining industry in general; the threat associated with outbreaks of viruses and infectious diseases, including the novel COVID-19 virus; delays in obtaining or failure to obtain necessary permits and approvals from local authorities; community agreements and relations and, other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Tinka believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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