WASHINGTON, D.C., May 27, 2015 /CNW/ - IFC, a member of the World Bank Group, today agreed to make an investment in Tinka Resources Limited ("Tinka") to help the company develop Peru's mining sector in a way that promotes job creation and local community development as well as economic growth.
IFC's investment of approximately $4.5 million Canadian dollars in Tinka will result in IFC acquiring 20,930,232 units of the up to 33,737,093 units being offered by Tinka to IFC and other investors. Each unit is composed of one common share of Tinka, 0.375 of a 2.5 year warrant, which will entitle IFC to acquire one common share at any time after closing until the day that is 30 months from closing, at an exercise price of $0.30 per common share and 0.375 of a 5 year warrant which will entitle IFC to acquire one common share at any time after closing until the day that is 5 years from closing, at an exercise price of $0.45 per common share. The issue price per unit is 0.215 Canadian dollars.
It is expected that upon completion of the subscriptions of IFC and the other investors (assuming all shares offered under the offering are subscribed for) there will be 149,807,322 Tinka common shares outstanding of which IFC will acquire and directly hold approximately 14.0% of the outstanding Tinka common shares (or approximately 22.1% of the outstanding Tinka common shares assuming IFC exercises all of the warrants it will acquire under this offering). IFC will, upon completion of the subscription, have ownership and control over 20,930,232 Tinka common shares, 7,848,837 2.5 year warrants of Tinka and 7,848,837 5 year warrants of Tinka.
IFC is acquiring its units for investment purposes by way of private placement pursuant to the terms of an equity and warrant subscription agreement containing customary terms and conditions as well as certain rights including, without limitation, information, policy and pre-emptive rights. Tinka is relying on the Distribution of Securities Outside of British Columbia Accredited Investor exemption pursuant to BC Instrument 72-503 in order to issue the securities to IFC. IFC may, in the future, take such actions in respect of its holdings as IFC deems appropriate in light of the circumstances then existing.
The transaction is expected to close on or about May 29, 2015.
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org.
SOURCE International Finance Corporation