Tinka Resources (TSX-V:TK) is raising C$11 million ($12.08 million) via a private placement to fund exploration programs across its central Peru assets.
The company will issue 200 million units at a price of C$0.055 per unit under a pre-consolidation basis, otherwise issuing 40 million units at C$0.28 per unit under a post-consolidation basis.
Units comprise one share and one-half purchase warrant, which will entitle the holder to acquire an additional share pre or post-consolidation at an exercise price of C$0.08 and C$0.40 respectively.
Tinka expects its directors and officers to participate in this offering, along with potential involvement from shareholders Nexa Resources and Compañia de Minas Buenaventura to maintain respective pro-rata interests.
If the companies elect to participate, Tinka may issue another 132 million shares to raise an additional C$7.26 million under this offering.
Proceeds raised will expedite an initial drill program at the Silvia Project, as well as a resource expansion program at the Ayawilca Project, both located in central Peru.
Exploration work at Ayawilca intends to target ‘high-grade’ zinc mineralisation.
Following the closing of this offering, Tinka intends to undergo a consolidation on the basis of five pre-consolidation shares per every one post-consolidation share, bringing its total to 148.14 million shares issued and outstanding from the current 740.7 million shares.
Meanwhile, the company is going through a structural change with the appointment of Brandon Macdonald and Michael Horner as directors.
With experience across exploration geology, mining, and finance sectors, Macdonald is a geologist who acted as the founding CEO of Fireweed Metals (CVE:FWZ).
He also previously spent time at Macquarie Bank in London and is currently serving on the board of Enduro Metals (CVE:ENDR).
Horner on the other hand provides Tinka with more than 10 years of experience across capital markets, mergers and acquisitions, and other operations.
He served as the CFO for Adriatic Metals (ASX:ADT), where he led the sale of DPM Metals for US$1.5 billion and raised more than US$100 million for the development of the Vares Project.
Tinka CEO Graham Carman says the company is delighted to have Macdonald and Horner join the board.
“Both bring highly relevant expertise, having been directly involved in the exploration and development of successful zinc projects in other jurisdictions,” Carman says.
“In addition, their strong capital markets experience will be a valuable asset to the company.”
Tinka Resources is an explorer focused on developing its flagship Ayawilca Project, while also exploring its nearby Silvia Project.
Write to Maddison Elliott at Mining.com.au
Images: Tinka Resources
