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VANCOUVER - Tinka Resources Limited (TSXV:TK) (OTCQB:TKRFF), currently valued at $17.69 million market cap, announced Wednesday it has increased the size of its previously announced private placement from C$11 million to C$14 million due to strong investor demand. According to InvestingPro analysis, the company maintains a healthy balance sheet with more cash than debt and is currently trading below its Fair Value, suggesting potential upside opportunity.
The upsized offering will consist of up to 254,545,455 units at C$0.055 per unit on a pre-consolidation basis, the company said in a press release. Each unit includes one common share and one-half of a common share purchase warrant.
Prior to closing the offering, Tinka plans to undertake a 5:1 share consolidation, which was initially announced on September 8. Following the consolidation, the offering would represent 50,909,091 units at C$0.275 per unit.
The company indicated that certain directors and officers are expected to participate in the offering. Mining companies Nexa Resources S.A. and Compañia de Minas Buenaventura SAA may also participate to maintain their respective ownership positions.
If pre-emptive rights held by Nexa and Buenaventura are exercised in full, Tinka could issue up to an additional 167.75 million pre-consolidation shares for approximately C$9.22 million in additional proceeds.
Proceeds from the offering will fund an initial drill program at the Silvia gold-copper project, resource expansion at the company’s Ayawilca zinc-silver-tin project in central Peru, and general working capital.
Separately, Tinka announced the grant of stock options to purchase up to 33 million pre-consolidation shares at an exercise price of C$0.08 per share to directors, officers, employees and consultants.
The private placement remains subject to customary conditions, including approval from the TSX Venture Exchange, and all securities issued will have a four-month hold period under Canadian securities laws. For deeper insights into Tinka’s financial health and additional investment metrics, InvestingPro subscribers have access to over 30 financial indicators and exclusive analysis tools.
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