TMAC Resources Inc.

TMAC Resources Inc.

August 17, 2015 15:52 ET

TMAC Resources Granted Inuit-Owned Lands Mineral Production Lease for Doris Mine

TORONTO, ONTARIO--(Marketwired - Aug. 17, 2015) -


TMAC Resources Inc. ("TMAC" or the "Company") (TSX:TMR) is pleased to announce that it has been entered into an Inuit Owned Lands Mineral Production Lease with Nunavut Tunngavik Incorporated ("NTI") for its Doris Mine, part of its Hope Bay Project located in the Kitikmeot Region, western Nunavut. The Doris Mine is the first of TMAC's Hope Bay mines to be developed, with site preparation for the processing plant and underground development having already begun.

Dr. Catharine Farrow, Chief Executive Officer of TMAC, stated, "We thank NTI for their granting of the Doris Production Lease, as TMAC continues to comply with the requirements of Inuit Owned Land tenure. We have an excellent working relationship with the NTI lands team and look forward to maintaining this relationship long into the future. Now that TMAC is fully-funded with the net proceeds of the recent IPO and funds available under the recently completed debt facility, the Doris Production Lease is another important step as TMAC ramps-up construction and development at Doris. The team is now able to focus on executing TMAC's Path to Production Plan to commission the processing plant at Doris in late 2016. To that end, our 2015 sealifts from both the west and east coasts of North America, as well as the Mackenzie River sealift, are progressing on schedule."

NTI is the legal representative of the Inuit of Nunavut and responsible for ensuring that the Nunavut Land Claims Agreement is implemented in Nunavut and that all related obligations are fulfilled, including those related to Inuit Owned Land sub-surface mineral rights. The form of Production Lease had been previously agreed to as part of the 20 year Inuit owned land tenure agreements TMAC signed with NTI and the Kitikmeot Inuit Association on March 30, 2015, including an Inuit Owned Lands Mineral Exploration Agreement that was dated and made effective as of January 1, 2015. The Mineral Exploration Agreement provides the Company with the right to explore for minerals within a specified exploration area and obtain a production lease to mine a deposit within that area that demonstrates economic viability. The form of production lease was approved by NTI and the Kitikmeot Inuit Association in connection with entering into the Mineral Exploration Agreement. The Mineral Exploration Agreement sets forth the conditions that, if met, obligate NTI to execute and deliver to the Company one or more production leases for deposits covered by the Mineral Exploration Agreement. These conditions include demonstrating economic viability, payment of certain initial amounts, and the parties agreeing on the area to be covered by the production lease. Under the Doris Production Lease, in consideration of fixed rental payments and a 12% net profits interest royalty from production, NTI leases and grants to TMAC all of the minerals from the Doris production lease area and grants to TMAC the sole and exclusive right to: (i) explore for, develop, mine or otherwise remove and process all of the minerals from the Doris production lease area; and (ii) produce, handle and sell the saleable production from the minerals mined. The Doris Production Lease is effective as of August 1, 2015. Prior to the commencement of commercial production at Doris, the Doris Production Lease is subject to renewal terms of 5 years. Upon commercial production, the balance of the then current 5 year term under the Doris Production Lease may be replaced with a 21 year renewal term.

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 Initial Public Offering 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; the geology of the Hope Bay Project being as described in the Company's technical report for the Hope Bay Project filed on SEDAR (the "PFS"); accuracy of the mineral resource and mineral reserve estimates 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 KIA and NTI 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 Company's prospectus dated June 26, 2015 filed on SEDAR at for s discussion of these risks.

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

  • TMAC Resources Inc.
    Terry MacGibbon

    TMAC Resources Inc.
    Catharine Farrow