Tinka Resources (TK-V) increases size (oversubscribed by $3.38-million) of private placement to $7.4 Million
July 17, '14 - NR
Tinka Resources (TK-V) and Darwin Resources (DAR-V), are pleased to announce that subject to TSX Venture Exchange acceptance, the second tranche of the private placement financing is oversubscribed by $3,389,485.
The private placement is being undertaken in two tranches. Under the first tranche closing announced by Tinka on May 1, 2014, Sentient Executive GP IV Ltd. became a shareholder of Tinka by subscribing for 1,818,812 units of Tinka at a price of 27.5 cents per unit for gross proceeds of $500,000. Each unit is composed of one common share and one-half of one common share purchase warrant, with each whole warrant being exercisable to acquire one Tinka share at a price of 36.5 cents for a period of 24 months. The second tranche of the private placement is expected to close concurrently with the closing of the arrangement between Darwin and Tinka, as announced by Darwin and Tinka on April 17, 2014, June 2, 2014, June 10, 2014, and July 14, 2014, which closing is concurrently scheduled to occur on or about July 24, 2014. Under the second tranche, Tinka now proposes to issue up to 27,016,309 units for gross proceeds of $7,429,485.
Sentient IV has agreed to increase its subscription in the private placement and will now subscribe for 19,512,727 units under the second tranche. Sentient IV beneficially owns, or exercises control or direction over, 1,818,182 Tinka shares or approximately 2.2 per cent of the issued and outstanding Tinka shares and 909,091 warrants. Sentient IV and Sentient Executive GP III Ltd. currently hold 10,112,032 common shares of Darwin and share purchase warrants entitling Sentient to acquire up to 1.9 million Darwin shares. Sentient has agreed to cancel its Darwin warrants as part of the arrangement. Accordingly, upon closing of the arrangement and the private placement, Sentient will beneficially own, or exercise control or direction over, 23,169,276 Tinka shares or approximately 19.99 per cent of the issued and outstanding Tinka shares and warrants entitling Sentient to acquire up to an additional 10,665,455 Tinka shares. Sentient has agreed to a restriction on the exercise of the Sentient warrants that will prevent the exercise thereof, should such exercise result in Sentient holding 20 per cent or more of the issued and outstanding Tinka shares, unless Tinka shareholder approval is obtained.
Graham Carman, Tinka's president and chief executive officer elect, stated: "I am very pleased with the results of the private placement, which is substantially oversubscribed. As a result, Tinka can pursue its drilling campaigns at both the Ayawilca zinc and Colquipucro silver projects."
The proceeds from the second tranche will be used for conducting exploration and resource development work on the Ayawilca and Colquipucro projects and the combined Tinka/Darwin exploration portfolio and for general working capital purposes.
Securities issued under the private placement are subject to a four-month hold period from closing of the private placement. Tinka intends to pay finders' fees on a portion of the second tranche. |
