The funds come via a December deal with Compañia de Minas Buenaventura SAA (NYSE:BVN), which operates a number of mines in the South American country.
Buenaventura took nearly 66 million shares of Vancouver-based Tinka at C$0.243 per share, netting Tinka C$16 million in proceeds.
READ: Tinka Resources brings on Peruvian miner Buenaventura as strategic investor; nets nearly C$18.5M financing
The remaining C$2.5 million comes via Sentient Global Resources Fund IV LP exercising its participation rights in the placement in the form of an additional 10.3 million shares.
The funds will go towards the development of Tinka’s flagship Ayawilca property in the zinc-lead-silver belt of central Peru.
"We are very pleased to close the C$18.5 million private placement financing and welcome again Buenaventura as a strategic investor of Tinka, and also note the continuing strong support of Sentient,” Tinka CEO Graham Carman said in a statement.
“We look forward to advancing our Ayawilca project in 2020 with additional resource definition and exploration drilling, and project development.”
Buenaventura senior executive Raul Benavides is expected to join Tinka’s board pending approval at a February 2020 board meeting, the company said in a statement.
As a result of the deal closing, Buenaventura becomes a new insider of Tinka with approximately 19.3% of outstanding shares on a non-diluted basis. Sentient holds an aggregate of just over 74 million shares or approximately 21.7%, and approximately 22.5% on a partially diluted basis assuming only Sentient IV warrants are exercised.
Tinka’s shares closed at C$0.17 on Monday in Toronto.
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