Major zinc producer Nexa pays 13% premium for a stake in Tinka Resources
(Kitco News) - Tinka Resources (TSXV & BVL: TK) (OTCPK: TKRFF) announced Wednesday that Nexa Resources (NYSE and TSX Symbol: NEXA), one of the largest zinc producers worldwide, has acquired 29,895,754 common shares of Tinka from an arm’s length shareholder in a private transaction at a price of C$0.26 per share, a 13.0% premium to the company’s closing share price on TSXV on March 16, 2021.
As a result, Nexa Resources has become a new shareholder of Tinka holding approximately 8.8% of the issued and outstanding common shares of Tinka. No special rights are attached to the acquisition of the shares.
President and CEO Dr. Graham Carman commented, “We welcome Nexa to our share register. Nexa is a major player in the worldwide zinc market and is the leading producer of zinc in Latin America. Nexa has several operating base metal mines in Peru and owns the only operating zinc smelter in the country. The addition of Nexa as a shareholder of Tinka is a strong endorsement of our Ayawilca zinc-silver project and of our team.”
Tinka is an exploration and development company with its flagship property being the 100%-owned Ayawilca zinc-silver project comprising 170 sq km in central Peru. A resource estimate dated November 2018 contains 1.8 billion pounds of zinc and 5.8 million ounces of silver in the indicated category plus 5.6 billion pounds of zinc and 25.2 million ounces of silver in the inferred category.
Nexa is a large-scale, low-cost integrated zinc producer with over 60 years of experience developing and operating mining and smelting assets in Latin America. Nexa currently owns and operates five long-life underground mines - three located in the Central Andes of Peru and two located in the state of Minas Gerais in Brazil - and is developing the Aripuanã Project as its sixth underground mine in Mato Grosso, Brazil. Nexa was among the top five producers of mined zinc globally in 2020 and also one of the top five metallic zinc producers worldwide in 2020, according to Wood Mackenzie.