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Tinka Resources Announces $7,008,000 Bought Deal Financing
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UN
About this update from Tinka Resources Limited
[{"type":"text","content":" THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES VANCOUVER, British Columbia, March 13, 2018 (GLOBE NEWSWIRE) -- Tinka Resources Limited (TSXV:TK) (BVL:TK) (OTCPK:TKRFF) (the “Company” or “Tinka”) announced today that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. (the “Underwriters”) pursuant to which the Underwriters will purchase, on a bought deal basis, 14,600,000 units (the “Units”) of the Company at a price of C$0.48 per Unit (the “Offering Price”) for aggregate gross proceeds to the Company of C$7,008,000 (the “Offering”). 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 12 months following the Closing Date (as hereinafter defined). The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 2,190,000 Units at the Offering Price, exercisable in whole or in part, at any time and from time to time for a period of 30 days from and including the closing of the Offering to cover over-allotments, if any, and for market stabilization purposes. If this option is exercised in full, an additional C$1,051,200 in gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be C$8,059,200. Concurrent with the Offering, the Company will undertake a non-brokered private placement (the “Private Placement”) of up to 12,500,000 Units at the Offering Price for additional gross proceeds of up to C$6,000,000 to i) certain existing shareholders pursuant to the exercise of pre-emptive rights, and ii) certain Peruvian and other purchasers. The net proceeds from the Offering and the Private Placement will be used to fund exploration expenditures at the Company’s Ayawilca Project in Peru, as well as for general working capital and corporate purposes. The Units under the Offering will be offered by way of a short form prospectus to be filed in all the provinces of Canada, except Québec. The Units will also be sold to U.S. buyer...