Tinka Announces Closing of C$18.5M Private Placement
TINKA RESOURCES LIMITED
#1305 – 1090 WEST GEORGIA STREET
VANCOUVER, B.C. V6E 3V7
Tel: (604) 685 9316 Fax (604) 683 1585
Website: www.tinkaresources.com
TSXV & BVL: TK OTCPK: TKRFF
NEWS RELEASE January 13, 2020
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES.
TINKA ANNOUNCES CLOSING OF C$18.5M PRIVATE PLACEMENT
Vancouver, Canada – Tinka Resources Limited ( “Tinka” or the “ Company”) ( TSXV & BVL: TK )
(OTCPK: TKRFF) is pleased to announce the closing of the strategic private p lacement financing announced
on December 19, 2019. Under the Private Placement, the Company has issued 65,843,620 common shares of
the Company (the “Common Shares”) to Compañia de Minas Buenaventura SAA (“Buenaventura”) at a price
of C$0.243 per Common Share (the “ Issue Price ”) for gross proceeds to Tinka of C$16 million (the
“Buenaventura Subscription”, and collectively with the S entient Subscription described below, the “Private
Placement”). As a result of the closing of the Private Placement, Buena ventura has become a new insider of
Tinka holding approximately 19.3% of the outstanding common shares of the Company on a non-diluted basis.
Sentient Global Resources Fund IV, LP (“ Sentient IV”), an Insider of the Company, exercised its pre-existing
participation rights in respect of the Private Placement. As a result, Sentient IV subscribed for 10,288,066
Common Shares in the Private Placement at the Issue Price (the “Sentient Subscription”) for additional gross
proceeds to Tinka of C$2.5 million. Pursuant to the closing of the Private Placement, Sentient IV holds an
aggregate of 74,036,831 common shares of Tinka or approximately 21.7% of the Company’s outstanding
common shares, and approximately 22.5% on a partially-diluted b asis assuming only Sentient IV warrants are
exercised.
The Common Shares issued under th e Buenaventura Subscription ha ve a twenty-four-month equity lock-up
expiring on January 14, 2022 as well as certain customary stand still provisions. The Common Shares issued
pursuant to the Private Placement are subject to a four-month h old period pursuant to Canadian securities laws
expiring on May 14, 2020. The Private Placement is subject to final acceptance from the TSX Venture
Exchange.
The net proceeds from the Private Placement will be used for development of the Company’s Ayawilca Project,
further exploration, and for working capital and general corpor ate purposes. No finder’s fees or commissions
were paid on the Private Placement.
It is anticipated that Mr. Raul Benavides will join the Board o f Tinka as Buenaventura’s director-nominee at
Tinka’s upcoming Annual General Meeting of Shareholders (AGM) to be held on Thursday, February 27, 2020,
in Vancouver.
The President and CEO of Tinka, Dr. Graham Carman, stated: “We are very pleased to close the C$18.5 million
private placement financing and welcom e again Buenaventura as a strategic investor of Tinka, and also note
the continuing strong support of Sentient. We look forward to advancing our Ayaw ilca project in 2020 with
additional resource definition and explora tion drilling, and project development. We also look forward to Mr.
Raul Benavides joining our board of directors at our upcoming AGM in February.”
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Participation by Sentient IV in t he Private Placement is consid ered 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 for mal valuation or minority shareholder
approval in connection with the I nsider’s participation in the Private Placement in reliance of sections 5.5(b)
and 5.7(a) of MI 61-101.
The securities offered have not been, and will not be, registered under the United States Securities Act of 1933,
as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the
United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption
from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press
release does not constitute an offer to sell or the solicitatio n of an offer to buy securities in the United States,
nor in any other jurisdiction.
About Tinka Resources Limited
Tinka is an exploration and devel opment company with its flagship property being the 100%-owned Ayawilca
carbonate replacement deposit (CRD) located in the zinc-lead-si lver belt of central Peru, 200 kilometres
northeast of Lima. The Ayawilca Zinc Zone contains 11.7 Mt of I ndicated Resources grading 6.9% zinc, 0.2%
lead, 15 g/t silver and 84 g/t indium and 45.0 Mt Inferred Resources grading 5.6% zinc, 0.2% lead, 17 g/t silver
and 67 g/t indium. A Preliminary Economic Assessment for the A yawilca Zinc Zone was released on July 2,
2019 (see release). The Qualified Person, Dr. Graham Carman, Tinka’s President and CEO, and a Fellow of
the Australasian Institute of Mining and Metallurgy, has review ed and verified the technical contents of this
release.
About Compañia de Minas Buenaventura SAA
Buenaventura is a Peruvian precious and base metals producer wi th over 66 years of experience in exploration,
development, construction and mi ning operations. Currently the company operates several mines, both
underground and open pit, and has an important participation in Minera Yanacocha SRL, a world-class gold
deposit in the Cajamarca region and Sociedad Minera Cerro Verde S.A.A, a world-class copper mine in the
Arequipa region of Peru. Buenave ntura is the first Latin Americ an mining company to list on the New York
Stock Exchange, starting in 1996, and currently trades on the NY and Lima stock exchanges.
On behalf of the Board,
“Graham Carman”
Dr. Graham Carman, President & CEO
Investor Information:
www.tinkaresources.com
Rob Bruggeman 1.416.884.3556
Company Contact:
Mariana Bermudez 1.604.699.0202
Forward Looking Statements: Certain information in this news release contains forward-look ing statements and forward-looking
information within the meaning of applicable securities laws (c ollectively "forward-looking statements"). All statements, other than
statements of historical fact are forward-looking statements. F orward-looking statements are ba sed on the beliefs and expectat ions of
Tinka as well as assumptions made by and information currently available to Tinka's management. Such statements reflect the c urrent
risks, uncertainties and assumptions related to certain factors including, without limitations, drilling results, the use of proceeds from the
Private Placement, the appointme nt of Buenaventura’s director-n ominee at the next annual genera l meeting of the Company, final
acceptance of the Private Placement from the TSX Venture Exchange, the Company’s expectations regarding the Ayawilca Project PEA,
changes in world metal markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the
future, equipment failure, unex pected geological conditions, im precision in resource estimates or metal recoveries, success of future
development initiatives, compe tition, operating performance, en vironmental and safety risks, 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 materialize, or should any underlying assumptions 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 st atements are not guarantees o f 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 obligation to update any forward-looking statement.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Ex-
change) accepts responsibility for the adequacy or accuracy of this news release