Resource Capital Funds invests $40 mln more in TMAC’s Nunavut gold project

Canadian mineral exploration and development company TMAC Resources Inc has raised private placement funding of over $44.1 million. Of this total amount, $40 million was invested by U.S. private equity firm Resource Capital Funds. Net proceeds of the overall offering will be used by TMAC to finance the 2015 work program of its Hope Bay gold project, located in the Kitikmeot region of Nunavut. Resource Capital Funds, which has an office in Toronto, invested $65 million in the company in May 2014.


TMAC Resources Completes C$44.1 Million Equity Financing to Further Advance Hope Bay Along the Path to Production

TORONTO, ONTARIO–(Marketwired – Jan. 19, 2015) –

TMAC Resources Inc. (“TMAC” or the “Company”) is pleased to announce the successful completion of a private placement consisting of 23,443,572 common shares at a price of C$1.75 (the “Common Shares”) and 1,550,000 Common Shares issued on a flow-through basis at a price of C$2.00 (the “Flow-Through Shares”), for aggregate gross proceeds of C$44,126,250 (the “Offering”). The Offering was co-led by CIBC World Markets Inc. and BMO Capital Markets. A total of C$40.0 million of the Offering was placed with Resource Capital Fund VI L.P.

The net proceeds of the Offering will be used by TMAC at its 100% owned Hope Bay Gold Project (“Hope Bay”) located in the Kitikmeot region of Nunavut, Canada, to fund its 2015 work program including the ongoing pre-feasibility study, exploration, engineering, development, community relations activities and for general corporate purposes.

Terry MacGibbon, TMAC’s Executive Chairman stated, “This financing clearly demonstrates the strong endorsement by investors of the high quality Hope Bay project and the strength of the Company’s management team in what has otherwise been a challenging market. This capital, along with our current funds, will provide TMAC the ability to complete the Hope Bay pre-feasibility study and put TMAC in a position to consider making a production decision in 2015. Given the extensive infrastructure already in place, pending sufficient project funding, the construction of a processing plant and the additional underground development at Doris are the only significant requirements remaining prior to being able to initiate gold production. Hope Bay remains one of the most prospective undeveloped gold camps globally and will offer high grade production as early as December 2016 with industry leading AISCs and unrivalled exploration upside along the 80 kilometre gold belt.”

Catharine Farrow, TMAC’s Chief Executive Officer stated, “This new financing provides TMAC with the opportunity to continue to execute on the path toward a production decision at Hope Bay in 2015. With the 2014 extensive surface drill programme, re-opening of the underground workings at Doris, and the results of metallurgical test work for the Doris processing plant flowsheet we have the information necessary to finalize a pre-feasibility study by the end of the first quarter of 2015. This financing facilitates the initiation of a detailed engineering contract with Gekko Systems for the processing plant, securing underground equipment, finalizing engineering and fabrication of a processing plant building, completing earthworks for the processing plant site, continuing the path to long-term permitting for production at Madrid and Boston, and reaching final agreements with the Kitikmeot Inuit Association and Nunavut Tunngavik Incorporated on Inuit-Owned Lands. We look forward to continuing to work with the KIA, our strategic shareholders and all other stakeholders to make the development of Hope Bay a great success.”

About TMAC
TMAC is a privately held mineral exploration and development focused company headed by Terry MacGibbon, founder of FNX Mining Company Inc. and co-founder and Chairman of Torex Gold Resources Inc. TMAC management has an exceptional track record of developing high grade, profitable underground mines.

Forward-Looking Statements
This press release is not an offer to sell, or a solicitation of an offer to purchase, any securities in the United States. The securities referred to in this press release have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933 and applicable state securities laws.

This release contains “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws that are intended to be covered by the safe harbors created by those laws. “Forward-looking statements” or “forward-looking information” include 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, statements with respect to completing the pre-feasibility study, the matters facilitated by the financing, making a production decision, the potential for high grade production as early as December 2016, industry leading AISCs and unrivalled exploration upside along the 80 kilometre gold belt.

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: favourable equity and debt capital markets; the ability to raise sufficient capital to advance the development of the Hope Bay Project and pursue planned exploration; future prices of gold and other metal prices; accuracy of any mineral resource estimates; the geology of the Hope Bay Project being as described in the technical report for the Hope Bay Project (the “PEA”); the metallurgical characteristics of the deposit being suitable for the Gekko plant; the successful operation of the Gekko plant; production costs; 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. The assumptions used to produce the mineral resource estimates and the preliminary economic assessment of the Hope Bay Project are detailed in the PEA, which is available on the Company’s website. While the Company considers these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, contingencies and other factors that could cause actual performance, achievements, actions, events, results or conditions to be materially different from those projected in the forward-looking information. Many assumptions are based on factors and events that are not within the control of the Company and there is no assurance they will prove to be correct.

Furthermore, such forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others: general business, economic, competitive, political, regulatory and social uncertainties; disruptions or changes in the credit or securities markets and fluctuations in prices for the Company’s securities; a material decline in the price of gold; adverse variations in mineral grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; damage to the Gekko plant in the course of transport or assembly; differences in size, grade, continuity, geometry or location of mineralization from that predicted by geological modeling; the speculative nature of mineral exploration and development, including the risk of diminishing quantities or grades of mineralization and the inherent riskiness of inferred resources; failure to renew existing licences and permits or obtain required licences and permits; changes in project parameters as development plans are refined; changes in labour costs or other costs of production; accidents, labour disputes and other risks of the mining industry, including but not limited to environmental risks and hazards, cave-ins, pitwall failures, flooding, rock bursts and other acts of God or natural disasters or unfavourable operating conditions and losses; political instability, hostilities, insurrection or acts of war or terrorism; adverse changes in government legislation and regulation; adverse fluctuations in commodity prices; failure to raise sufficient funding to meet development and exploration plans and budgets, satisfy contractual obligations and additional capital needs generally; changes or disruptions in financial markets and capital goods markets; increased infrastructure and/or operating costs; unanticipated reclamation costs; the Company’s lack of operating history and no history of earnings; reliance on a finite number of properties; limits of insurance coverage and uninsurable risk; disputes over title to properties; environmental risks and hazards; limitations on the use of community water sources; failure to comply with laws and regulations or other regulatory requirements; the impact of competitive conditions in mineral exploration and mining business; the inability of the Company to retain its key management employees and shortages of skilled personnel and contractors; influence of third party stakeholders; risks of litigation; failures or deficiencies in the Company’s system of internal controls; conflicts of interest; credit and/or liquidity risks; fluctuations in the value of Canadian and United States dollars relative to each other; and the risks involved in the exploration, development and mining business generally. Although TMAC has attempted to identify important factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those described in forward-looking information, there may be other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended.

TMAC cautions that the foregoing list of important factors and assumptions is not exhaustive. Other events or circumstances could cause actual results to differ materially from those estimated or projected and expressed in, or implied by, this forward-looking information. Forward-looking information contained herein is made as of the date of this document and TMAC disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, future events or results or otherwise, except as required by applicable law. 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 statements. Accordingly, readers should not place undue reliance on forward-looking information.

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