TMAC Resources Inc. (TSX: TMR) announced today that it intends to raise $50 million by of a private placement with Resource Capital Fund VI L.P. and Newmont Mining Corporation (NYSE: NEM) for $29,648,486 and a con-current marketed overnight public offering for $20,351,520.
Resource Capital Fund VI L.P. and Newmont Mining currently hold 30.5% and 28.8%, respectively, of the issued and outstanding common shares of TMAC Resources.
Pursuant to the public offering, TMAC Resources is expected to issue up to 2,907,360 common shares at a price of $7.00 (down from filed proposed price of $7.20) per share.
The public offering will be conducted through a syndicate of underwriters led by BMO Capital Markets. Cassels Brock & Blackwell LLP and Bennett Jones LLP act legal counsel to TMAC Resources and the underwriters respectively.
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, Resource Capital Fund VI L.P. and Newmont Mining will complete a private placement at the offering price pursuant to which they will purchase 2,179,232 common shares ($15,254,624) and 2,056,266 common shares ($14,393,862), respectively. Resource Capital Fund VI L.P. and Newmont Mining will each have the right to increase the size of their subscription by the same proportion as the amount of the over-allotment option that is exercised by the underwriters.
TMAC Resources intend to use net proceeds for the continued ramp up of the processing plant, continued advancement of the Hope Bay belt and for general corporate purposes.
TMAC Resources 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.
photo credit: TMAC Resources Inc.