TMAC Resources Inc.

TMAC Resources Inc.

August 11, 2015 08:21 ET

TMAC Resources Announces Closing of $20.1 Million Over-Allotment Option

TORONTO, ONTARIO--(Marketwired - Aug. 11, 2015) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TMAC Resources Inc. ("TMAC" or the "Company") is pleased to announce that the underwriters for the Company's $135,000,000 initial public offering (the "IPO") of 22,500,000 common shares (the "Common Shares") completed on July 7, 2015, have exercised their option (the "Over-Allotment Option") to purchase an additional 3,350,000 Common Shares at a price of $6.00 per Common Share. Aggregate gross proceeds from the exercise of the Over-Allotment Option are $20,100,000. Today's closing of the Over-Allotment Option brings the aggregate gross proceeds of the IPO to $155,100,000.

Terry MacGibbon, TMAC's Executive Chairman stated, "We are very pleased that, as a result of strong demand, we were able to upsize the IPO from $105,000,000 to $135,000,000. The underwriters have now substantially exercised their Over-Allotment Option and the Company received today additional gross proceeds of $20,100,000, bringing the total gross proceeds of the IPO to $155,100,000."

Catharine Farrow, TMAC's Chief Executive Officer stated, "This successful IPO, including the exercise of Over-Allotment Option, along with our January 2015 treasury and the previously announced senior secured term loan facility provides the Company with over $370 million to fund our total pre-production expenditures of approximately $290 million, comprised of $206 million of pre-production capital expenditures on the Hope Bay Project, $26 million of collateral for reclamation bonding letters of credit and $58 million of corporate, exploration, permitting and general expenditures (please see TMAC's final prospectus for the IPO dated June 26, 2015 (the "Prospectus")). We remain on schedule and budget to achieve initial production at Hope Bay in December 2016."

The Common Shares trade on the Toronto Stock Exchange under the symbol "TMR". With the closing of the Over-Allotment Option there are 77,613,259 Common Shares issued and outstanding.

The underwriting syndicate for the Company's IPO was led by BMO Capital Markets and CIBC, and included Dundee Securities Ltd., GMP Securities L.P., National Bank Financial Inc., Scotia Capital Inc. and TD Securities Inc.

This press release is not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia) or any other jurisdiction outside Canada. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada. The securities offered pursuant to the Prospectus have not been and will not be registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or the securities laws of any state of the United States and may not be offered or sold within the United States other than pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offer of securities in the United States.

About TMAC Resources

TMAC Resources Inc. was incorporated under the OBCA on October 30, 2012. The Company's principal business objectives are the acquisition, exploration and development of precious metal resource properties. The Company's principal asset is a 100% interest in the Hope Bay Project, which it acquired from Newmont in March 2013. The Company's near term goal is to bring the Hope Bay Project into production, beginning with bringing the Doris deposit into production by the end of 2016.

Since TMAC's incorporation, it has focused on the exploration and development of the Hope Bay Project and the raising of equity capital to fund property exploration and development. The Company has an experienced board of directors with depth of experience and market credibility and an exploration and development team with an extensive track record of developing high grade, profitable underground mines.

Forward-Looking Information

This release contains "forward-looking information" within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. "Forward-looking information" includes statements that use forward-looking terminology such as "may", "will", "expect", "anticipate", "believe", "continue", "potential" or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, bringing the Hope Bay Project into production, beginning with bringing the Doris deposit into production by the end of 2016, the availability of funds under the secured term loan facility (the "Debt Facility"), and that the net proceeds of the IPO and drawdowns under the Debt Facility will be sufficient to fully fund the Hope Bay Project.

Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made, including among other things, assumptions about: the ability meet the conditions to drawdowns under the Debt Facility; the ability to raise any additional capital needed to advance the development of the Hope Bay Project to production; future prices of gold and other metal prices; accuracy of the mineral resource and mineral reserve estimates in the Company's Preliminary Feasibility Study technical report for the Hope Bay Project filed on SEDAR ("PFS"); the geology of the Hope Bay Project being as described in the PFS; the metallurgical characteristics of the deposit being suitable for the processing plant; the successful and timely delivery, installation and operation of the processing plant; production costs being as estimated in the PFS; accuracy of budgeted exploration and development costs and expenditures, including to complete development of the infrastructure at the Hope Bay Project; the price of other commodities such as fuel; future currency exchange rates and interest rates; favourable operating conditions; political and regulatory stability; receipt of governmental approvals and permits and all necessary third party financing on favourable terms; obtaining renewals for existing licences and permits and obtaining all other required licences and permits; sustained labour stability; stability in financial and capital goods markets; availability of equipment; positive relations with the Kitikmeot Inuit Association and Nunavut Tunngavik Inc. and other local groups; and the Company's ability to operate in the harsh northern Canadian climate.

Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Prospectus as filed on SEDAR for a discussion of certain factors investors should carefully consider before deciding to invest in the Common Shares.

The Company cautions that the foregoing lists of important assumptions and factors are not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, the forward-looking information contained herein. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information.

No securities regulatory authority has either approved or disapproved of the contents of this press release.

Contact Information

  • Terry MacGibbon
    416-628-0216

    Catharine Farrow
    416-628-0216