Tinka had announced in December Compañia de Minas Buenaventura SAA would acquire $16 million worth of shares at 24.3c, an 83% premium to Tinka's three-month VWAP.
Tinka's major shareholder Sentient Global Resources Fund IV has exercised its pre-existing participation rights, subscribing for $2.5 million in shares to hold about 21.7% of the company.
The junior announced the closing of the placement yesterday and said the shares issued under the Buenaventura subscription were subject to a 24-month equity lock-up and certain customary standstill provisions.
Buenaventura's Raul Benavides is expected to be the director-nominee appointed to Tinka's board at the junior's AGM on February 27.
Tinka said Ayawilca was "shaping up to be one of the best new zinc development projects in the Americas with strong economics and a long mine life of over 20 years" as it released a preliminary economic assessment in July.
The study estimated initial capex of US$262 million, an after-tax NPV (8% discount) of $363 million and an IRR of 27.1%, for a 21-year mine producing an average annual 101,000 tonnes of zinc recovered in concentrate and 906,000 ounces of silver in a silver-lead concentrate.
Drilling results since have revealed high grades including 26.1m at 10.1% zinc.
"We look forward to advancing our Ayawilca project in 2020 with additional resource definition and exploration drilling, and project development," president CEO Dr Graham Carman said yesterday.
Tinka shares have ranged from 11-41c over the past year and closed yesterday at 16.5c to capitalise it at $43.7 million (US$33.5 million).