Tinka Resource Ltd. (TK.V) is a mining company focused on exploration and discovery. TK.V's Ayawilca property (100% owned) is located 200 km north of Lima, Peru. Ayawilca is the zinc-led-silver belt of central Peru with access to infrastructure. TK.V also has over 50% institutional ownership and has analyst coverage from GMP Securities, Industry Alliance and Canaccord Genuity.
Since our last update the following releases were issued.
July 9 - Tinka CEO Announces Exercise of Stock Options Dr. Graham Carman, President, CEO has exercised TK.V's stock options to purchase 1,23M shares which were due to expire on July 11 (exercise price of $0.35), generating total proceeds to Tinka of C$0,43M.
In order to partially fund the exercise of the Stock Options, Dr. Carman sold 0.4M shares in a private transaction intended to minimize the impact on the stock price. As a result of the exercise of options and sale of shares, Dr. Carman has increased his share ownership of TK.V's.
Also announces was the cancellation of 0.5M incentive stock options that were granted on August 28, 2017, at $0.65 to a director of the Company.
Sept. 18 - Reports Additional Step-Out & Infill Drill Holes At Ayawilca And Highlights Upper Manto Discovery Twelve drill holes from the Company’s ongoing resource expansion and confirmation drill program at the 100% owned Ayawilca project, central Peru. Several high content zinc drill holes.
Now plans to update the Ayawilca resource estimate in Q4 2018, while step-out drilling continues Tinka has so far drilled 19,000 metres in 2018, on top of 46,000 metres drilled at the Ayawilca project from the initial discovery in 2013 to the end of 2017.
Importantly, the 2018 drill program is on schedule and on budget.” Upon completion of the resource update in Q4 2018, the Company will be in a position to either move ahead with a Preliminary Economic Assessment in 2019, or to focus on further resource expansion.
"Completing a mineral resource update, expanding metallurgical test work, and advancing the project to a PEA in 2019. Tinka is well positioned financially with C$13 million in cash reserves at the end of September 2018 and no debt.” The property has already attracted interest from a number of large mining companies, and the Company has signed multiple confidentiality agreements and conducted several site visits.
The June 26th unprecedented drill results had a short-lived impact on valuation. Here's why - the zinc price was diving.
In addition, the insider sales were met with confusion until the subsequent announcement; exercise of options (July 9th). As the zinc price continued to drop, the (Aug 1st) drilling results was no contest. Thereafter, further pressure on zinc price coupled with the one on the TSX Venture contributed to a recent 52 week low of $0.30 cents.
Due to current market sentiments, TK.V is considered to be very attractive at the current levels. The recent drill results, the upcoming resource update, metallurgical work expansion, Preliminary Economic Assessment (PEA), and the $13M in cash reserves with no debt, are current indicators.
As such, we continue to believe that TK.V is very much still undervalued.
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