Tinka Resources Limited

May 06, 2008 17:14 ET

Tinka Announces $1.2 Million Private Placement Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 6, 2008) - Tinka Resources Limited (the "Company") (TSX VENTURE:TK)(PINK SHEETS:TKRFF)(FRANKFURT:TLD). Mr Andrew Carter, President, announces a non-brokered private placement financing of up to 4,000,000 units (the "Units") at $0.30 per Unit for total gross proceeds of $1,200,000.

Each Unit will consist of one common share and one half share purchase warrant (the "Warrants"). Each whole Warrant will be exercisable at a price of $0.50 for 12 months from the date of closing of the financing.

The Warrants are subject to a forced conversion which comes into effect once the shares trade above a weighted average price of $0.60 for any twenty consecutive trading-day period after four months and one day following closing of the financing. The expiry date of the Warrants will then be 30 days from the date the Company issues a news release announcing the forced conversion.

A finder's fee of 8% cash is payable on a portion of the financing.

The terms of the financing are subject to acceptance by the TSX Venture Exchange.

The net proceeds from the financing will be used to commence a multi-phase drill program at the Company's 100% owned Colquipucro project, Peru, consisting of approximately 44 diamond drill holes for 10,000 metres, as recommended by a recently completed independent NI 43-101 report, and for general working capital.

As announced by the Company on April 24, 2008, the NI 43-101 report determined an inferred silver resource, using a cut-off of 30 g/t, of 5,669,853 tonnes at 111.4 g/t (20.3 million ounces) with an immediate potential contiguous target for up to a further 2 million tonnes at similar silver grades. The potential quantity and grade of the contiguous target is conceptual in nature, and there has been insufficient exploration to define this target at this time. It is uncertain that drilling will result in further discoveries in this area. A complete copy of the NI 43-101 can be viewed at the Company's website www.tinkaresources.com and/or at www.sedar.com.

Another zone of similar mineralization at Colquipucro has been discovered by surface sampling about 2 km to the south of Zone 1, the subject of the NI 43-101 report. This new target area is approximately 3 times the area of Zone 1 and will be included in the multi-phase drill program.

On behalf of the Board,

Andrew Carter, President & CEO

Forward Looking Statements. This Company news release contains certain "forward-looking" statements and information relating to the Company that are based on the beliefs of the Company's management as well as assumptions made by and information currently available to the Company's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

Neither the TSX Venture Exchange nor the Frankfurt Deutsche Borse have reviewed the information contained herein, and, therefore, do not accept responsibility for the adequacy or accuracy of this release.

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