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WASHINGTON, DC, Nov. 11, 2016 /CNW/ - IFC, a member of the World Bank Group, today agreed to re-invest in Tinka Resources Limited ("Tinka") to help the company continue to develop Peru's mining sector in a way that promotes job creation and local community development as well as economic growth.
IFC's planned investment of approximately $1,550,000 Canadian dollars in Tinka will result in IFC acquiring ownership and control over 7,750,000 common shares (each a "Common Share") of the up to 55,000,000 Common Shares being offered by Tinka to IFC and other investors (the "Offering"). The issue price per Common Share is $0.20 Canadian dollars. The Common Shares to be acquired by IFC represent approximately 4.0% of the total issued and outstanding Common Shares of Tinka after giving effect to the closing on November 7, 2016 of the first tranche Offering.
It is expected that upon completion of the subscriptions of IFC and the other investors (assuming all Common Shares offered under the Offering are subscribed for) there will be 204,807,322 Common Shares outstanding of which IFC will hold approximately 14.0% of the outstanding Common Shares, or 20.1%, assuming the exercise of all of IFC's 15,697,674 warrants (the "IFC Warrants"). IFC will, upon completion of the subscription, have ownership and control over 28,680,232 Common Shares as well as the IFC Warrants. Prior to the completion of the subscription, IFC had ownership and control over 20,930,232 Common Shares representing (after giving effect to the closing on November 7, 2016 of the first tranche Offering) approximately 10.8% of the outstanding Common Shares, or 17.4%, assuming the exercise of the IFC Warrants.
IFC is acquiring the Common Shares for investment purposes by way of private placement pursuant to the terms of a subscription agreement dated November 9, 2016. The subscription agreement contains customary terms and conditions as well as certain rights including, without limitation, information rights and policy conditions. IFC executed this subscription agreement as part of its regular portfolio management. IFC may, in the future, take such actions in respect of its holdings as IFC deems appropriate in light of the circumstances then existing. Tinka is relying on the Distribution of Securities Outside of British Columbia exemption pursuant to BC Instrument 72-503 in order to issue the securities to IFC.
Tinka's head office is located at 1305 – 1090 West Georgia Street, Vancouver, B.C. V6E 3V7. Its shares trade on the TSX Venture Exchange.
The transaction is expected to close on or about November 16, 2016.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
IFC, 2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it's needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
For further information: A copy of IFC's early warning report required to be filed in connection with the acquisition of common shares of Tinka will appear on Tinka's profile on SEDAR at www.sedar.com and may also be obtained by calling Stevan Jackson, Communications Officer, IFC, at +1 202.458.5054.