Compania 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
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-stage exploration of the Silvia project, and for working capital and general corporate purposes.
The President and CEO of Tinka, Dr.
The CEO of Nexa, Mr.
Upon closing of the Nexa Subscription, for so long as Nexa owns 5% or more of the outstanding shares of Tinka, on a partially-diluted basis, Nexa will have the right to nominate one individual to Tinka's board of directors. It is anticipated that Mr.
Participation by Buenaventura in the Private 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 Insider's participation in the Private Placement in reliance of sections 5.5(b) and 5.7(a) of MI 61-101.
All securities issued in connection with the Private Placement will be subject to a statutory four-month hold period. The Private Placement is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including the approval of the Exchange.
Contact:
Tel: 1.604.685.9316
Email: info@tinkaresources.com
Web: www.tinkaresources.com
About
Tinka is an exploration and development company with its flagship property being the 100%-owned Ayawilca zinc-silver-tin project in central
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. 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: timing and successful completion of the Private Placement; timing of planned work programs and results varying from expectations; delay in obtaining results; 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 and operating performance; environmental and safety risks; the Company's expectations regarding the Ayawilca Project PEA; the political environment in which the Company operates continuing to support the development and operation of mining projects; risks related to negative publicity with respect to the Company or the mining industry in general; the threat associated with outbreaks of viruses and infectious diseases, including the novel COVID-19 virus; 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.
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