Tintina soars on $66 Million backing for Chile copper-gold project
2026-06-03 10:56:05 [Print]
Tintina Mines has secured a C$91 million ($65.8 million) investment backed by Japan's Sumitomo Corp. and the Gignac family to fund the development of its flagship copper-gold asset and consolidate the project's ownership.
In a statement on Tuesday, the Chile-focused junior said the parties will be amongst the investors participating in a private placement of subscription receipts priced at C$0.68 each. The receipts will be offered in two tranches, each with a different type. The first - totalling C$62 million - has both common shares and warrants of Tintina, while the second comprises only common shares totalling C$29 million.
Up to approximately C$82 million of additional capital could be available upon full exercise of the warrants attached to the first-tranche receipts, the company said.
According to Tintina, Sumitomo and the Gignac family are expected to create a new investment vehicle to to equally fund the purchase of C$48 million in receipts, all in the first tranche. Upon completion and conversion of the receipts into shares, it would own 25% of the company's shares (or 38% after exercise of warrants).
Of the C$91 million in proceeds, about C$55 million will go towards advancing its Domeyko Sulfuros project towards a final investment decision (FID), Tintina said, while the remaining C$36 million will be used to buy out the minority shareholders of the project, which currently own a 26.25% stake. This gives the Domeyko Sulfuros project a pre-money valuation of C$138 million, it added.
The Domeyko Sulfuros project, located in Chile's Atacama Region in the north of the country, is a brownfield site with prior oxide operations. The copper-gold porphyry deposit currently has an estimated resource of 100.8 million tonnes measured and indicated, grading 0.35% copper and 0.28 grams per tonne gold, as well as 256.3 million tonnes inferred at 0.34% copper and 0.24 g/t gold.
Earlier this year, Tintina released a preliminary economic assessment on the project, outlining a potential 25-year open-pit mining operation that would produce 37,000 tonnes of copper and 57,000 ounces of gold in concentrate annually.
In a statement on Tuesday, the Chile-focused junior said the parties will be amongst the investors participating in a private placement of subscription receipts priced at C$0.68 each. The receipts will be offered in two tranches, each with a different type. The first - totalling C$62 million - has both common shares and warrants of Tintina, while the second comprises only common shares totalling C$29 million.
Up to approximately C$82 million of additional capital could be available upon full exercise of the warrants attached to the first-tranche receipts, the company said.
According to Tintina, Sumitomo and the Gignac family are expected to create a new investment vehicle to to equally fund the purchase of C$48 million in receipts, all in the first tranche. Upon completion and conversion of the receipts into shares, it would own 25% of the company's shares (or 38% after exercise of warrants).
Of the C$91 million in proceeds, about C$55 million will go towards advancing its Domeyko Sulfuros project towards a final investment decision (FID), Tintina said, while the remaining C$36 million will be used to buy out the minority shareholders of the project, which currently own a 26.25% stake. This gives the Domeyko Sulfuros project a pre-money valuation of C$138 million, it added.
The Domeyko Sulfuros project, located in Chile's Atacama Region in the north of the country, is a brownfield site with prior oxide operations. The copper-gold porphyry deposit currently has an estimated resource of 100.8 million tonnes measured and indicated, grading 0.35% copper and 0.28 grams per tonne gold, as well as 256.3 million tonnes inferred at 0.34% copper and 0.24 g/t gold.
Earlier this year, Tintina released a preliminary economic assessment on the project, outlining a potential 25-year open-pit mining operation that would produce 37,000 tonnes of copper and 57,000 ounces of gold in concentrate annually.
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