Shares of Peru-focused miner Tinka Resources (TSXV: TK) rose 25% in the afternoon on May 25 as the company announced investments worth $11 million from regional mining giants Nexa Resources (NYSE: NEXA) and Buenaventura (NYSE: BVN) in the firm.
One of the largest zinc producers in Latin America, Nexa will subscribe for 40.7 million common shares for proceeds of $9 million, increasing its total holdingto 71.3 million shares or about 18.2% of Tinka.
Buenaventura will subscribe for 9.7 million shares for proceeds of $2.2 million and will hold about 75.6 million common shares — about 19.3% of Tinka — upon the deal’s closing at the end of May.
“Nexa's strategic investment in Tinka, and the co-investment by Buenaventura, is a strong endorsement of our globally significant Ayawilca zinc project and of Peru as an important long-term mining and investment jurisdiction,” the company’s CEO Graham Carman said in a press release.
Proceeds from the investment will be used to develop Tinka’s flagship Ayawilca zinc-silver project including exploration and infill drilling programs, metallurgical programs, and other technical and environmental studies.