Published: July 14, 2020 |

[Click image to enlarge]

[Click image to enlarge]

TMAC Resources has entered into a definitive agreement with Shandong Gold Mining Co. Ltd. to which SD GOLD has agreed to acquire all of the outstanding shares of TMAC at a price of C$1.75 per share (the “Offer Price”) in cash.

The total equity value pursuant to the transaction is approximately US$149 million on a fully diluted basis.

Resource Capital Funds (RCF), Newmont Corporation, and directors and officers of TMAC collectively holding approximately 58.6 percent of the current outstanding TMAC common shares have entered into voting support agreements to support the transaction.

“The transaction is the culmination of the strategic review process we announced earlier this year. Over the past several months, SD GOLD has completed a significant due diligence review of TMAC, including a site visit to Hope Bay earlier this year. SD GOLD, as one of the world’s largest gold producers, has the financial strength, technical capability and long-term vision to maximize the value of the Hope Bay camp,” said Jason Neal, president and chief executive officer of TMAC.

“Hope Bay is a highly prospective high-grade gold camp which requires substantial investment to optimize production and extend mine life and maximize the value of the camp to the benefit of all stakeholders. We look forward to completion of the transaction and the opportunity to invest in the project for years to come as the generational potential of the camp is unlocked,” said Yumin Chen, Chairman of Shandong Gold Group.

“We have been impressed by TMAC’s strong relationships with its local stakeholders and responsible management of environmental and safety aspects of mining, and intend on demonstrating the same commitment as the owner and future developer of Hope Bay’s assets. We look forward to working closely with all stakeholders and local communities in Nunavut to deliver a world-class operation that will benefit the regional economy for generations to come,” added Chen.

“KIA supports the Hope Bay Project and all of the benefits it has brought and will bring to Kitikmeot Inuit and subject to KIA conducting its own due diligence would be supportive of a sale of TMAC to SD GOLD if KIA determines the proposed sale satisfies KIA’s mandate. KIA’s mandate is to manage Inuit Owned Lands and resources to protect and promote the social, cultural, political, environmental, and economic well-being of Kitikmeot Inuit,” said Stanley Anablak, president of the Kitikmeot Inuit Association (KIA).

BENEFITS TO CANADA

SD GOLD is among the world’s largest gold producers by market capitalization, with the financial strength and experience to invest in the Hope Bay camp. SD GOLD is committed to the long-term success of Hope Bay and the local communities in the region. As part of this transaction, SD GOLD plans to:

• Complete the feasibility study with respect to the expansion of Hope Bay mining and processing, following on the prefeasibility study recently completed by TMAC, and be in a position to execute and fund the significant capital expenditure required
 
• Maintain the significant contracting benefits to those serving Hope Bay, including the continuity of existing significant contract business to local, Inuit-owned firms
 
• Maintain the flow of royalties, fees and taxes to Inuit and Territorial governments, necessary to provide public services to Nunavut residents
 
• Continue to grow Inuit employment at Hope Bay
 
• Continue to invest in skills training for Inuit employees
 
• Provide ongoing and long-term employment opportunities, including highly skilled jobs, at Hope Bay
 
• Maintain a commitment to the highest standards of environmental sustainability and to the health and safety of its workers
 
• Support organizations in the local communities via charitable, social, recreational, and community development programs within Nunavut
 
• Expand SD GOLD’s existing office in Toronto – going forward, this regional office will oversee new project development of SD GOLD in the Americas
 
• Ensure the continued commercial orientation and standards of corporate governance practiced by TMAC

About TMAC Resources
TMAC operates the Hope Bay property located in Nunavut, Canada. The property and operations are remote but not isolated, serviced by both a port and airstrip. Hope Bay is an 80 km by 20 km Archean greenstone belt that has been explored by BHP, Miramar, Newmont and TMAC over a period spanning more than 30 years. In that time, more than $1.5 billion of expenditures have been spent in exploration and evaluation, surface infrastructure, and mine and process plant development. TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay, and processed gold at the Doris Plant which originally had nameplate capacity of 1,000 tonnes per day and expanded to 2,000 tonnes per day midway through 2018. There is potential to grow TMAC’s established deposits considerably at depth, and then grow resources further through the prioritized exploration of the more than 90 other identified regional targets. TMAC is now permitted to produce from both Madrid and Boston.

To stop by TMAC’s website, CLICK HERE

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2020 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)