RCF-backed TMAC Resources ups IPO target to $135 mln

Canadian mineral exploration and development company TMAC Resources Inc has filed its final prospectus for an initial public offering (IPO) of its common shares. The revised prospectus shows an increase in the offering’s target raise to about $135 million in gross proceeds, which is the result of “strong demand,” the company said. An over-allotment option could give TMAC up to about $155.2 million. Net IPO proceeds will be used in part to advance the company’s Hope Bay gold project to first production by the end of 2016. The project is located in the Kitikmeot region of Nunavut. TMAC is backed by U.S. private equity firm Resource Capital Funds (RCF) and other investors.


TMAC Resources Upsizes Initial Public Offering to C$135 Million and Files Final Prospectus to Fully Fund Hope Bay

TORONTO, ONTARIO–(Marketwired – June 29, 2015) –

TMAC Resources Inc. (“TMAC” or the “Company”) is pleased to announce that it has filed its final prospectus dated June 26, 2015 (the “Prospectus”) with the securities regulatory authorities in each of the provinces and territories of Canada, other than Quebec, in connection with the Initial Public Offering (the “Offering”) of its common shares.

As a result of strong demand, TMAC has elected to increase the size of the Offering. The final prospectus qualifies the distribution of an aggregate of 22,500,000 common shares of TMAC at a price of C$6.00 per common share for aggregate gross proceeds to TMAC of C$135,000,000. The Company has also granted the Underwriters an option (the “Over-Allotment Option”), exercisable in whole or in part for a 30 day period after closing of the Offering, to purchase up to an additional 3,375,000 common shares of TMAC at C$6.00 per common share. If the Underwriters exercise the Over-Allotment Option in full, the gross proceeds raised under the Offering will be C$155,250,000.

The net proceeds raised under the Offering will be used to advance the Hope Bay Project to planned first production by the end of 2016, for exploration activities and general corporate purposes. Closing of the offering is expected to occur on or about July 7, 2015.

Terry MacGibbon, TMAC’s Executive Chairman stated, “This significantly oversubscribed Offering, especially in what many believe to be a weak gold market, is truly a great testament to the TMAC management team, its board of directors and the Hope Bay Project. We are very appreciative of our current shareholder’s continuing support and welcome our new shareholders and look forward to sharing our successes with them in the coming years.”

Catharine Farrow, TMAC’s Chief Executive Officer stated, “We are already six months into our two year “Path to Production” plan for the Hope Bay Project, and completion of the Offering by early July will help to significantly de-risk the Hope Bay Project and allow us to work towards planned first production by the end of 2016.”

The Offering is being made through a syndicate of underwriters led by BMO Capital Markets and CIBC and includes Dundee Securities Ltd., GMP Securities L.P., National Bank Financial Inc., Scotia Capital Inc. and TD Securities Inc.

A final prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in certain jurisdictions of Canada. A copy of the final prospectus is available from the persons above and is on the SEDAR website at www.sedar.com. The final prospectus notes that an investment in the common shares of the Company is speculative and involves a high degree of risk. The Company’s business is subject to the risks normally encountered in the mining industry. An investment in the common shares of the Company is suitable only for those investors who are willing to risk a loss of some or all of their investment. For more information, potential investors should read the final prospectus, including the “Risk Factors” and the “Statement Regarding Forward Looking Information”.

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.

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

Terry MacGibbon

Catharine Farrow

Photo courtesy of TMAC Resources Inc