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VANCOUVER, April 27, 2018 /CNW/ - Tinka Resources
Limited ("Tinka" or the "Company") (TSXV&
BVL: TK) (OTCPK: TKRFF) is pleased to announce that it
has closed the second and final tranche (the "Second
Tranche") of its previously announced non-brokered private
placement financing (the "Placement") of units of the
Company (the "Units"). Under the Second Tranche, the
Company issued 5,020,000 Units at an issue price of C$0.48 per Unit (the "Issue Price") for
gross proceeds to the Company of C$2,409,600. The Second Tranche has accommodated
the rights of International Finance Corporation ("IFC") and
Sentient Global Resources Fund IV, LP ("Sentient"), two
existing shareholders of the Company, who exercised their existing
contractual pre-emptive rights as a result 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"). In
aggregate, the Bought Deal, First Tranche and Second Tranche
comprise of 33,832,284 Units for gross proceeds of C$16,239,496.
IFC, a member of the World Bank Group, acquired 3,950,000 Units
under the Second Tranche at the Issue Price for gross proceeds to
the Company of C$1,896,000. IFC
now has control over 29,895,754 common shares or approximately
11.5% of the issued and outstanding common shares of Tinka, and
13.2% assuming the exercise of all of IFC's 9,823,837 warrants on a
fully diluted basis.
Sentient, who also participated in the First Tranche, acquired
an additional 1,070,000 Units, under the Second Tranche, for gross
proceeds to the Company of C$513,600
under the Second Tranche, to maintain its pro-rata share ownership
interest in the Company. As a result, Sentient now controls
over 63,748,765 common shares of the Company or approximately 24.7%
of the issued and outstanding common shares of the Company, and
23.8% of assuming exercise of all of Sentient's warrants, on a
fully diluted basis.
The Company plans to use the net proceeds from the Second
Tranche to fund exploration expenditures at the Company's Ayawilca
Project in Peru, as well as for
other corporate purposes and general working capital. No
commissions or finder's fees were paid by Tinka in connection with
the closing of the Second Tranche.
Dr. Graham Carman, President
& CEO stated, "Tinka is very pleased to have the continued
support of IFC and Sentient, and their participation in the
Placement is a strong endorsement of the quality of our Project and
management team. The Company continues to aggressively explore its
100% owned Ayawilca Project in Peru, which we believe is one of the most
exciting pre-development zinc projects anywhere in the world. The
Company is now fully funded to carry out its planned exploration
programs for the next 18 months. Drilling has already been stepped
up to three rigs, and we look forward to disclosing the results of
the drill programs, and other planned work such as metallurgical
tests, as results come to hand."
IFC and Sentient are insiders of the Company, and their
participation 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 Second Tranche are subject
to a four-month hold period expiring on August 28, 2018.
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, 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
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