TMAC Resources closes $53M financing led by Resource Capital Fund

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By Ted Liu

TMAC Resources Inc. (TSX: TMR) has closed its previously announced offering of common shares and concurrent private placement for aggregate gross proceeds of approximately $53 million .

Pursuant to the public offering, TMAC Resources issued 3,081,802 common shares, including 174,442 shares issued on the full exercise of the underwriters’ over-allotment option, at price of $7.00 per share for gross proceeds of $21,572,614

TMAC Resources issued RCF VI CAD LLC, an affiliate of Resource Capital Fund VI L.P., and Newmont Mining Corporation (NYSE: NEM) 4,489,628 common shares for gross proceeds of $31,427,396.

RCF VI purchased 2,309,986 common shares for consideration of $16,169,902. Following the completion of financing RCF VI beneficially owns, directly or indirectly, 27,959,260 TMAC common shares, representing approximately 30.51% of TMAC’s common shares.

Newmont Mining Corporation, indirectly through its wholly owned subsidiary Newmont Canada FN Holdings ULC, acquired 2,179,642 shares for consideration of $15,257,494. Following the closing of the financing, Newmont holds 26,381,620 shares, representing approximately 28.79% of the issued and outstanding common shares of TMAC.

TMAC Resources intends 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.

The offering was conducted through a syndicate of underwriters led by BMO Capital Markets and including CIBC World Markets Inc., Scotia Capital Inc., Sprott Capital Partners, TD Securities Inc., Canaccord Genuity Corp., Echelon Wealth Partners Inc., GMP Securities L.P., National Bank Financial Ltd. and RBC Capital Markets.

Cassels Brock & Blackwell LLP and Bennett Jones LLP acted legal counsel to TMAC Resources and the underwriters respectively.

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