TMAC Resources Inc.

TMAC Resources Inc.

October 26, 2017 16:17 ET

TMAC Resources Announces Concurrent Private Placement and Overnight Marketed Equity Offering for Aggregate Gross Proceeds of C$50 Million

TORONTO, ONTARIO--(Marketwired - Oct. 26, 2017) -


TMAC Resources Inc. (TSX:TMR) ("TMAC" or the "Company") announces today that it will be raising an aggregate of approximately C$50 million via a C$29,648,486 private placement (the "Private Placement") with Resource Capital Fund VI L.P. ("RCF") and Newmont Mining Corporation ("Newmont") and a concurrent marketed overnight public offering of C$20,351,520 (the "Public Offering").

In respect of the Public Offering, the Company has filed today a preliminary short-form prospectus with regulatory authorities in all provinces and territories of Canada, other than Québec, relating to the Public Offering. The Public Offering will be conducted through a syndicate of underwriters led by BMO Capital Markets.

Under the Public Offering, the Company is expected to issue up to 2,907,360 common shares ("Common Shares") at a price of C$7.00 per Common Share (the "Offering Price"). The Company has granted the Underwriters an option, exercisable at the Offering Price for a period of 30 days following the closing of the Public Offering, to purchase up to an additional 6% of the Public Offering to cover over-allotments, if any (the "Over-Allotment Option"). The Public Offering is expected to close on or about November 9, 2017 and is subject to TMAC receiving all necessary regulatory approvals.

TMAC directors and officers will be participating in the Public Offering for a minimum of C$2,000,000.

Concurrent with the Public Offering, RCF and Newmont will complete the Private Placement at the Offering Price pursuant to which they will purchase 2,179,232 Common Shares (C$15,254,624) and 2,056,266 Common Shares (C$14,393,862), respectively. RCF and Newmont will each have the right to increase the size of their subscription in the Private Placement by the same proportion as the amount of the Over-Allotment Option that is exercised by the Underwriters.

The net proceeds of the Public Offering and the Private Placement will be used for the continued ramp up of the processing plant, continued advancement of the Hope Bay belt and for general corporate purposes.

The Common Shares will be offered by way of a short form prospectus in all of the provinces and territories of Canada, except Québec, and may also be offered by way of private placement in the United States.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About TMAC Resources

TMAC holds a 100% interest in Hope Bay located in the Kitikmeot region of Nunavut, Canada. TMAC is an emerging gold producer with the Doris mine pouring first gold in the first quarter of 2017 and achieving commercial production in the second quarter of 2017. The Madrid and Boston properties are expected to commence production in 2020 and 2022, respectively. The Company has an experienced, expert board of directors combined with exploration, development and operating teams with extensive track records of discovering, developing and operating high grade, profitable underground mines. TMAC's shares trade on the Toronto Stock Exchange under the trading symbol TMR.

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, the timing for bringing Madrid and Boston into production and the rate of ramp up at Doris throughout 2017.

Forward-looking information is not a guarantee of future performance and management bases forward-looking statements on a number of estimates and assumptions at the date the statements are made. 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 plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See "Risk Factors" in the Company's Annual Information Form dated February 23, 2017 filed on SEDAR at for a discussion of these risks.

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