Tinka Resources Limited announced that it has entered into an equity subscription agreement for private placement of 50,563,210 common shares at an issue price of CAD 0.22 per share for gross proceeds of CAD 11,123,906.2 on May 24, 2022. The transaction included participation from returning investor Nexa Resources S.A. for 40,792,541 shares and Compañía de Minas Buenaventura S.A.A. for 9,770,669 shares. Prior to the transaction, Nexa Resources S.A. held approximately 9% of the issued and outstanding common shares of the company.

Upon closing of the Private Placement, investor will become a new insider of company, holding approximately 18.2% or 71,343,053 of the issued and outstanding common shares of company on a non-diluted basis. For so long as Nexa Resources S.A owns 5% or more of the issued and outstanding shares of company on a partially diluted basis, Nexa Resources S.A. will have the right to nominate one individual to company board of directors. As part of the transaction, Jones Belther of Nexa Resources S.A. will join the board of directors of the company.

Nexa Resources S.A. has been granted a pre-emptive right to maintain its percentage interest in the outstanding shares of company, in connection with any future issuances of company securities, subject to certain exclusions. All securities issued in connection with the transaction will be subject to a statutory four-month hold period. The transaction is subject to certain conditions customary for transactions of this nature, including, but not limited to, the receipt of all necessary approvals, including the approval of the Exchange, subject to receipt of the approval of the TSX Venture Exchange.

The transaction is expected to close on or about May 31, 2022.