Business
Tinka Announces C$11M Strategic Investment by Nexa and Buenaventura
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED S...
About this update from Tinka Resources Limited
[{"type":"text","content":"Tinka Announces C$11M Strategic Investment by Nexa and BuenaventuraNOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATESVANCOUVER, BC / ACCESSWIRE / May 25, 2022 / Tinka Resources Limited (\"Tinka\" or the \"Company\") (TSXV:TK)(BVL:TK)(OTCQB:TKRFF) is pleased to announce that it has entered into an equity subscription agreement (the \"Agreement\") with Nexa Resources S.A. (\"Nexa\") (NYSE Symbol:NEXA), the largest zinc producer in Latin America with several long-life operating mines and smelting operations in Peru and Brazil. Compañia de Minas Buenaventura SAA (\"Buenaventura\"), an Insider of the Company, has advised it will exercise its pre-existing participation rights on the same terms and conditions.Under the terms of the Agreement, Nexa will subscribe for 40,792,541 common shares (the \"Common Shares\") of Tinka at a price of C$0.22 per Common Share (the \"Issue Price\") for gross proceeds to Tinka of C$8.97 million (the \"Nexa Subscription\"), with additional pre-existing subscription rights as described below (the \"Private Placement\"). Prior to the Private Placement, Nexa held approximately 9% of the common shares of Tinka (see NR March 17, 2021). Upon closing of the Private Placement, Nexa will become a new insider of Tinka holding 71,343,053 of the outstanding common shares or approximately 18.2% of the Company on a non-diluted basis. Buenaventura will subscribe for 9,770,669 Common Shares in the Private Placement at the Issue Price (the \"Buenaventura Subscription\") for additional gross proceeds to Tinka of C$2.15 million. Upon closing of the Private Placement, Buenaventura will hold 75,614,289 common shares of Tinka and will continue to hold approximately 19.3% of the outstanding common shares of the Company on a non-diluted basis. In total, the gross proceeds of the Private Placement will be C$11.12 million. No finder's fees or commissions are payable on the Private Placement. Subject to receipt of Exchange acceptance, the Private Placement is expected to close on or about May 31, 2022.Pursuant to the Agreement, 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-st...