/THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS
NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
VANCOUVER, April 17, 2018 /CNW/ - Tinka Resources
Limited ("Tinka" or the "Company") (TSXV&
BVL: TK) (OTCPK: TKRFF) is pleased to announce that it
has upsized the second tranche ("Second Tranche") of the
previously announced non-brokered private placement financing (the
"Placement") of units of the Company (the "Units"),
due to certain existing shareholders exercising their pre-emptive
rights. International Finance Corporation ("IFC"), an
insider of the Company, has exercised its pre-existing pre-emptive
right in respect of the Company's public offering of units which
closed on April 4, 2018 (the
"Bought Deal") and the first tranche of the private
placement financing that closed on April 6,
2018 (the "First Tranche"). As a result, IFC
proposes to acquire 3,950,000 units (the "Units") at a price
of C$0.48 per Unit (the "Issue
Price"), for gross proceeds to the Company of C$1,896,000.
Each Unit will consist 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 will entitle the holder to
acquire one Common Share of the Company at a price of C$0.75 for a period of one year from closing of
the Second Tranche.
As a result of IFC's participation in the Second Tranche,
Sentient Global Resources Fund IV, LP ("Sentient IV"), an
insider of the Company, has exercised its pre-existing pre-emptive
right, pursuant to which, Sentient IV proposes to subscribe for
1,070,000 Units for gross proceeds to the Company of C$513,600, to maintain its pro-rata share
ownership interest in the Company.
As a result of the above described pre-emptive rights, the
Company anticipates that the Placement, on closure of the Second
Tranche, will be upsized from 14,000,000 Units to 17,042,284
Units.
The Issue Price for Units in the Second Tranche is the same as
for the Company's Bought Deal and Placement financings. No
finders' fees are payable in connection with the Second
Tranche.
The Company plans to use the net proceeds from the Second
Tranche of 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.
All securities issued pursuant to the Second Tranche will be
subject to a four-month hold period under applicable securities
laws in Canada.
Closing of the Second Tranche is subject to the completion of
conditions customary for transactions of this nature, including the
execution of subscription agreements and receipt of the acceptance
of the TSX Venture Exchange.
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 Second Tranche 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 execution of definitive subscription
agreements with each of IFC and Sentient and the successful
completion of the Second Tranche, the receipts of requisite
regulatory approvals, the anticipated use of proceeds of the Second
Tranche, 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.
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