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Tinka Resources brings in more cash to advance Peru project - with first tranche of private placing

Last updated: 19:02 09 Apr 2018 BST, First published: 14:02 09 Apr 2018 BST

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Tinka has brought in more funds via a fundraise

Tinka Resources Ltd (CVE:TK) has brought more funds in - having closed the first tranche of a private placing for C$5.77mln.

It comes after last week, the group raised over C$8mln in an oversubscribed bought deal financing to be used for exploration in Peru.

As with both financings, the firm plans to use the net proceeds to finance exploration at the Ayawilca project in Peru, as well as for other corporate purposes.

As part of the first tranche, Sentient Global Resources Fund IV LP exercised its pre-existing participation rights and bought over 7.3 mln shares for C$3,514,800 and now has around 24.7% of the shares.

"We are pleased to close the first tranche of the private placement financing," said Dr Graham Carman, Tinka president and chief executive.

"I wish to thank Sentient Equity Partners for their continued support of the company, along with several other existing shareholders, and those that have participated in the president's list. I would also like to welcome several Peruvian investors to the Tinka shareholder register for the first time.

"The funds raised are anticipated to enable the company to execute its exploration objectives at the Ayawilca zinc project in Peru over the next 12 to 18 months" he added.

"During 2018 we are planning up to 15,000 metres of step-out drilling at the Ayawilca project, targeting additional zinc resources at the Zone 3, Valley, and extensions to South and West Ayawilca areas.

"We anticipate updating the mineral resources and completing a preliminary economic assessment during the second half of 2018.

"Two drill rigs are currently operating on site. I look forward to updating our shareholders as the drill results become available."

Under this first tranche, each unit consisted of one share and one-half a share purchase warrant.

Each warrant entitles the holder to buy one share at 75 cents at any time before April 6 2019.

Shares in Tinka added 4.35% to 48 Canadian cents on the day.

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