Tinka Announces Closing C$11M Strategic Investment BY Nexa and Buenaventura
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TINKA ANNOUNCES CLOSING C$11M STRATEGIC INVESTMENT BY NEXA AND BUENAVENTURA
Vancouver, Canada – Tinka Resources Limited (“Tinka” or the “Company”) (TSXV & BVL: TK) (OTCQB: TKRFF) is pleased
to announce the closing of the strategic private placement fina ncing (the “ Private Placement”) announced on May 25,
2022. Under the Private Placement, the Company has issued an aggregate of 50,563,210 common shares of the Company
(the “Common Shares” ) a t a n i s s u e p r i c e o f C $ 0 . 2 2 ( t h e “Issue Price”) per Common Share for gross proceeds to the
Company of C$11.12 million.
Prior to the closing of the Private Placement, Nexa Resources S.A. (“Nexa”), the largest zinc producer in Latin America with
several long‐life operating mines and smelting operations in Pe ru and Brazil, held 30,550,512 common shares of Tinka or
approximately 9.0% of the outstanding common shares of Tinka on a non‐diluted basis. Pursuant to the Private Placement,
Nexa subscribed for 40,792,541 Common Shares, resulting in Nexa becoming a new insider of Tinka holding a total of
71,343,053 common shares or 18.2% of the outstanding common shares of Tinka on a non‐diluted basis.
Compañia de Minas Buenaventura SAA (“ Buenaventura” ) , a n I n s i d e r o f t h e C o m p a n y , e x e r c i s e d i t s p r e ‐ e x i s t i n g
participation rights on the same terms and conditions of the Private Placement. As a result, Buenaventura subscribed for
9,770,669 Common Shares in the Pri vate Placement at the Issue P rice. Pursuant to the closing of the Private Placement,
Buenaventura now holds 75,614,289 common shares of Tinka or approximately 19.3% of the outstanding common shares
of the Company on a non‐diluted basis.
T h e p r o c e e d s o f t h e P r i v a t e P l a c e m e n t w i l l b e u s e d f o r d e v e l o p ment of the Company’s Ayawilca project (including
significant exploration and infill drilling programs, metallurgical programs, and other technical and environmental studies),
the continued early‐stage exploration of the Silvia project, an d for working capital and general corporate purposes. No
finder’s fees or commissions are payable on the Private Placement.
The President and CEO of Tinka, Dr. Graham Carman, stated: “The closing of the C$11M Private Placement financing with
Nexa and Buenaventura will enable the Company to accelerate its work programs and advance Ayawilca as quickly as
possible towards development. I wish to thank Nexa and Buenave ntura for their support of the Company and a shared
vision for Ayawilca to become the next major zinc mine in Peru. Tinka will immediately commence a resource definition
drill program in June 2022 targeting a significant increase in measured and indicated resources, together with some step‐
out exploration holes. We look forward to announcing more details of the upcoming programs.”
“We also welcome Mr. Jones Belther to Tinka’s board of directo rs. Jones has many years experience in exploration and
successful development of base metal projects worldwide. We look forward to his contributions at board level.”
Participation by Buenaventura in the Private Placement is considered a “related party transaction” pursuant to Multilateral
Instrument 61‐101 ‐ Protection of Minority Security Holders in Special Transactions (“MI 61‐101”). The Company is exempt
from the requirements to obtain a formal valuation or minority shareholder approval in connection with the Insider’s
participation in the Private Placement in reliance of sections 5.5(b) and 5.7(a) of MI 61‐101.
All securities issued in connection with the Private Placement are subject to a statutory four‐month hold period, expiring
on October 1, 2022. The Private Placement is subject to final approval of the TSX Venture Exchange.
May 31, 2022
T: 604.685.9316 [email protected]
NEWS RELEASE TSXV & BVL: TK OTCQB: TKRFF
On behalf of the Board,
“Graham Carman”
Dr. Graham Carman, President & CEO
Further Information:
www.tinkaresources.com
Mariana Bermudez 1.604.685.9316
About Tinka Resources Limited
Tinka is an exploration and development company with its flagsh ip property being the 100%‐o wned Ayawilca zinc‐silver‐
tin project in central Peru. The Zinc Zone deposit has an estim ated Indicated Mineral Resource of 19.0 Mt @ 7.15% Zn,
16.8 g/t Ag & 0.2% Pb and Inferred Mineral Resource of 47.9 Mt @ 5.4% Zn, 20.0 g/t Ag & 0.4% Pb (dated August 30, 2021
‐ see news release). The Ayawilca Tin Zone has an estimated Inferred Mineral Resource of 8.4 Mt grading 1.0% Sn. Tinka
holds 46,000 hectares of mining claims in Central Peru, one of the largest holders of mining claims in the belt. Tinka is
actively exploring for copper‐gold skarn mineral deposits at its 100%‐owned Silvia project. Dr. Graham Carman, a qualified
person, Tinka’s President and CEO and a Fellow of the Australas ian Institute of Mining and Metallurgy has reviewed and
verified the technical contents of this release.
Forward Looking Statements: Certain information in this news release contains forward‐looking statements and forward‐looking information within
the meaning of applicable securit ies laws (collectively "forwar d‐looking statements"). All stat ements, other than statements of historical fact are
forward‐looking statements. Forw ard‐looking statements are base d on the beliefs and expectations of Tinka as well as assumptio ns made by and
information currently available to Tinka's management. Such st atements reflect the current risks, uncertainties and assumptions related to certain
factors including, without limitations: the Company’s expectati ons regarding the Private Placement use of proceeds; final appr oval of the Private
Placement by TSXV; timing of pla nned work programs and results varying from expectations; delay in obtaining results; changes in equity markets;
uncertainties relating to the availability and costs of financing needed in the future; equipment failure, unexpected geological conditions; imprecision
in resource estimates or metal recoveries; success of future de velopment initiatives; competiti on and operating performance; e nvironmental and
safety risks; the Company’s expe ctations regarding the Ayawilca Project PEA; the political envir onment in which the Company op erates continuing
to support the development and operation of mining projects; risks related to negative publicity with respect to the Company or the mining industry
in general; the threat associated with outbreaks of viruses and infectious diseases, including the novel COVID‐19 virus; delays in obtaining or failure
to obtain necessary permits and approvals from local authorities; community agreements and relations; and, other development and operating risks.
Should any one or more of these risks or uncertainties material ize, or should any underlying a ssumptions prove incorrect, actu al results may vary
materially from those described herein. Although Tinka believes that assumptions inherent in the forward‐looking statements are reasonable,
forward‐looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to
the inherent uncertainty therein. Except as may be required by applicable securities laws, Tinka disclaims any intent or oblig ation to update any
forward‐looking statement. Furthe r i n f o r m a t i o n c o n c e r n i n g r i s k s and uncertainties associated with these forward‐looking statements and our
business can be found in our public disclosures filed under our profile on SEDAR (www.sedar.com)
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this news release.