Tinka Resources closes $14.27-million private placement

Executive Summary

• Tinka Resources Ltd. closed an oversubscribed non-brokered private placement raising gross proceeds of C$14.27 million.
• The company appointed Brandon Macdonald as Executive Chairman in connection with the financing.
• Net proceeds will fund drilling at the Silvia gold-copper project, resource expansion at Ayawilca, and general working capital.

Key Details

• Financing Structure:
  • Gross Proceeds: C$14,277,500.
  • Units Issued: 51,918,181 units.
  • Price: C$0.275 per unit.
  • Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
  • Warrant Terms: Each warrant allows the purchase of one additional share at an exercise price of C$0.40 for a period of 36 months from closing.
  • Statutory Hold Period: Four months, expiring on February 4, 2026.
  • Regulatory Approval: Subject to final approval of the TSX Venture Exchange.
• Use of Proceeds:
  • Finance an initial drill program at the Silvia gold-copper project.
  • Resource expansion at Ayawilca, specifically targeting high-grade zinc mineralization.
  • Corporate and general working capital purposes.
• Transaction Costs & Insider Participation:
  • Finders' Fees: Aggregate fees of $118,933.50 paid to arm's-length third parties, including $14,850 to Taylor Collison Ltd.
  • Insider Participation: Directors and officers purchased an aggregate of 2,520,909 units. This constituted a related party transaction exempt from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101.
  • Waiver of Rights: Certain parties elected not to exercise their pro rata participation rights.
• Management Changes:
  • Brandon Macdonald appointed as Executive Chairman.

Notable Quotes

• Brandon Macdonald, Executive Chairman: "With the financing closed, a new chapter begins for a reinvigorated Tinka. I am excited for not just expanding and advancing the world-class Ayawilca zinc-silver-tin project, but also the imminent start of the first-ever drill program at the highly compelling Silvia gold-copper project. Big things are coming for Tinka, and I'm proud to be part of the team making it happen."