Company to acquire Darwin at one Tinka share for 5.5 Darwin shares
By Devika Patel
Knoxville, Tenn., April 17 - Tinka Resources Ltd. said it plans a C$4.54 million private placement of units.
The company will sell 16,509,090 units of one common share and a half-share warrant at C$0.275 per unit.
Each whole warrant is exercisable at C$0.365 for two years. The strike price is a 1.35% discount to the April 16 closing share price of C$0.37.
The company also said it plans to acquire Darwin Resources Corp. Darwin shareholders will receive one Tinka share for each 5.5 Darwin shares for a total of 6,131,725 Tinka shares in exchange for 33,724,488 Darwin shares. The exchange numbers were based on Tinka's April 11 closing share price of C$0.365 and values Darwin at C$0.066 per share.
Tinka favors the acquisition since it will gain access to Darwin's mineral properties in Peru. Darwin, in turn, gains access to Tinka's Ayawilca and Colquipucro zinc, silver, copper and lead projects.
Proceeds will be used for exploration and resource development work on the Ayawilca and Colquipucro projects and the combined Tinka/Darwin exploration portfolio, working capital and general working capital purposes.
Vancouver, B.C.-based Tinka is a resources company.
| Issuer: | Tinka Resources Ltd.
|
| Issue: | Units of one common share and a half-share warrant
|
| Amount: | C$4.54 million
|
| Units: | 16,509,090
|
| Price: | C$0.275
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.365
|
| Pricing date: | April 17
|
| Stock symbol: | TSX Venture: TK
|
| Stock price: | C$0.37 at close April 16
|
| Market capitalization: | C$24.27 million
|
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