/THIS NEWS RELEASE IS INTENDED FOR
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VANCOUVER, April 9, 2018 /CNW/ - Tinka Resources
Limited ("Tinka" or the "Company") (TSXV &
BVL: TK) (OTCPK: TKRFF) is pleased to announce that it
has closed the first tranche (the "First Tranche") of the
previously announced non-brokered private placement financing (the
"Placement") of units of the Company (the "Units").
Under the First Tranche, the Company issued 12,022,284 Units at an
issue price of C$0.48 per Unit (the
"Issue Price"), for aggregate gross proceeds of C$5,770,696. Each Unit consisted of one (1)
common share (a "Common Share") and one-half (0.5) of a
common share purchase warrant (each whole common share purchase
warrant a "Warrant"). Each Warrant entitles the holder
to acquire one Common Share of the Company at a price of
C$0.75 at any time prior to
April 6, 2019. The Issue Price
for Units in the Placement is the same as for the Company's bought
deal financing which closed on April 4,
2018, and raised gross proceeds of C$8,059,200.
The Company plans to use the net proceeds from the Placement to
fund exploration expenditures at the Company's Ayawilca Project in
Peru, as well as for other
corporate purposes and general working capital.
Dr. Graham Carman, President and
CEO of Tinka states: "We are pleased to close the first tranche
of the private placement financing. I wish to thank Sentient Equity
Partners for their continued support of the Company, along with
several other existing shareholders, and those that have
participated in the president's list. I would also like to welcome
several Peruvian investors to the Tinka shareholder register for
the first time."
"The funds raised are anticipated to enable the Company to
execute its exploration objectives at the Ayawilca zinc project in
Peru over the next 12 to 18
months. During 2018 we are planning up to 15,000 metres of
step-out drilling at the Ayawilca project, targeting additional
zinc resources at the Zone 3, Valley, and extensions to South and
West Ayawilca areas. We anticipate updating the Mineral
Resources and completing a Preliminary Economic Assessment during
the second half of 2018. Two drill rigs are currently operating on
site. I look forward to updating our shareholders as the drill
results become available."
As part of the First Tranche, Sentient Global Resources Fund IV,
LP ("Sentient IV"), an Insider of the Company, has exercised
its pre-existing participation rights in respect of the Placement.
Pursuant to the First Tranche, Sentient IV purchased 7,322,500
Units at the Issue Price for gross proceeds of C$3,514,800, resulting in Sentient IV owning an
aggregate of 62,678,765 common shares of the Company following the
closing of the First Tranche or approximately 24.7% of the
Company's basic shares outstanding, and approximately 23.9% fully
diluted.
Participation by Insiders of the Company in the 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 Insiders'
participation in the Placement in reliance of sections 5.5(b) and
5.7(a) of MI 61-101.
All securities issued pursuant to the Placement on the date
hereof are subject to a four-month hold period under applicable
securities laws in Canada expiring
on August 7, 2018.
The Company paid a cash commission of C$39,191 to Kallpa Securities of Peru on a portion of the Placement. No other
commissions were paid pursuant to the Placement.
The securities offered have not been, and will not be,
registered under the U.S. Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any U.S. state securities laws, and may
not be offered or sold in the United
States or to, or for the account or benefit of, a U.S.
Person (as defined in Regulation S under the U.S. Securities Act)
absent registration or an applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy securities
in the United States or to, or for
the account or benefit of, any U.S. Person, nor shall there be any
sale of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Tinka Resources Limited
Tinka is an exploration and development company with its
flagship property being the 100%-owned Ayawilca carbonate
replacement deposit (CRD) in the zinc-lead-silver belt of central
Peru, 200 kilometres northeast of
Lima. The Ayawilca Zinc Zone has
an Inferred Mineral Resource of 42.7Mt at 6.0% zinc, 0.2% lead, 17
g/t silver & 79 g/t indium, and a Tin Zone Inferred Mineral
Resource of 10.5 Mt at 0.6 % tin, 0.2% copper & 12 g/t silver
(for further information, refer to Tinka's press release dated
November 8, 2017).
The scientific and technical disclosure in this news release has
been reviewed and approved by Dr. Graham
Carman, President and CEO of the Company, who is a Qualified
Person as defined by National Instrument 43-101 – Standards of
Disclosure for Mineral Projects.
On behalf of the Board,
"Graham Carman"
Dr. Graham Carman, President
& CEO
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, including, but not limited to
statements regarding the intended use of proceeds, the completion
of the Placement in full, undertaking and completing exploration
objectives at the Ayawilca zinc project, and the completion of a
preliminary economic assessment. 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 successful completion of the Placement,
the receipts of requisite regulatory approvals, the anticipated use
of proceeds of the Placement, drilling results, the Company's
expectations regarding mineral resource calculations, capital and
other costs varying significantly from estimates, production rates
varying from estimates, changes in world metal markets, 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, operating performance, environmental and safety risks,
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. Except as
may be required by applicable securities laws, Tinka disclaims any
intent or obligation to update any forward-looking
statement.
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Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Tinka Resources Limited