- Tinka (TK) has announced an C$8.97M investment from Nexa Resources
- Nexa is the largest zinc producer in Latin America
- Buenaventura SAA, a Tinka insider, will exercise pre-existing participation rights on the same terms and conditions for $2.15M
- Tinka will allocate the proceeds toward exploration on its Ayawilca Project and Silvia Copper-Gold Project
- Tinka is an exploration and development company active in Peru
- Tinka (TK) is up by 25.93 per cent trading at $0.17 per share
Tinka (TK) has announced an C$8.97M investment from Nexa Resources.
Nexa is the largest zinc producer in Latin America with several long-life operating mines and smelting operations in Peru and Brazil.
Nexa will subscribe for 40,792,541 Tinka common shares priced at $0.22 for gross proceeds of $8.97M.
Upon closing, Nexa will double its ownership in Tinka to 18.2 per cent on a non-diluted basis.
Compañia de Minas Buenaventura SAA, a Tinka insider, will exercise pre-existing participation rights on the same terms and conditions. It will subscribe for 9,770,669 common shares for gross proceeds of $2.15M.
Upon closing, Buenaventura will continue to hold approximately 19.3 per cent of Tinka on a non-diluted basis.
Tinka expects the private placement to close on or about May 31, 2022.
It will allocate the proceeds toward imminent exploration and infill drilling, metallurgical programs and technical and environmental studies on its Ayawilca Project, the continued early-stage exploration of its Silvia Copper-Gold Project, as well as working capital and general corporate purposes.
Ayawilca is one of the largest zinc development projects in Peru, positioning Nexa to further capitalize on the metal’s key role in the green economy.
The project’s Zinc Zone Deposit has an estimated indicated mineral resource of 19 Mt grading 7.15 per cent Zn, 16.8 g/t Ag and 0.2 per cent Pb, as well as an inferred mineral resource of 47.9 Mt grading 5.4 per cent Zn, 20 g/t Ag and 0.4 per cent Pb.
Its Tin Zone has an estimated inferred mineral resource of 8.4 Mt grading 1 per cent Sn.
“Nexa’s strategic investment in Tinka, and the co-investment by Buenaventura, is a strong endorsement of our globally significant Ayawilca zinc project and of Peru as an important long-term mining and investment jurisdiction,” stated Graham Carman, Tinka’s President and CEO.
“Nexa is a dominant player in the zinc business in Latin America, owning three mines and a smelting operation in central Peru in close proximity to Ayawilca. The private placement investment highlights the potential synergies of a successful mine development at Ayawilca for all parties concerned,” he added.
Tinka is an exploration and development company active in Peru.
Tinka (TK) is up by 25.93 per cent trading at $0.17 per share as of 1:12 pm EST.