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Resource Capital Funds’ TMAC wraps up IPO with $155 mln raise

TMAC Resources Inc, a portfolio company of U.S. private equity firm Resource Capital Funds (RCF) and other investors, has completed its previously announced initial public offering (IPO), giving TMAC a Toronto Stock Exchange listing under the symbol “TMR”. The offering, which was targeted to raise $135 million in proceeds, brought in $155.1 million in total, which accounts for an over-allotment purchase option granted to underwriters. The IPO’s net proceeds will be used in part to fund development of the Toronto-based company’s Hope Bay gold project in Nunavut. The project is scheduled for initial production in December 2016.


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

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

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.

Terry MacGibbon

Catharine Farrow

Photo courtesy of TMAC Resources Inc