TMAC announces strategic review process

20 January 2020

TMAC Resources Inc. announces it has initiated a strategic process to explore, review and evaluate a broad range of potential alternatives focused on maximizing shareholder value, including a potential sale or merger of the Company, joint venture of the Hope Bay mine, introduction of a new significant strategic shareholder or various long-term financing alternatives.
Jason Neal, President and Chief Executive Officer of TMAC, stated, “With the support of Resource Capital Funds and Newmont Corporation, representing 58.5% of our shares outstanding, we have initiated a strategic process to explore potential alternatives to maximize shareholder value, potentially enhance trading liquidity and generate the financial strength which will allow Hope Bay to achieve its potential. Alignment with our largest shareholders is a key consideration in the timing of this process. Additionally, a transaction in early 2020 would provide an advantage in planning and procurement for the 2020 sealift, which may include additional purchases to support investment that TMAC may not otherwise make itself at this time.”
Jason Neal continued, “Maximizing value for our stakeholders, including but not limited to our shareholders, employees and the people of the Kitikmeot region, is not possible without maximizing the value of Hope Bay. We have been making operational performance improvements since construction was completed, although we have not yet reached our targets. We have recently initiated development of the second underground mine at Madrid North, and with respect to the production expansion of Hope Bay, we are advancing our prefeasibility study which is expected to be completed this quarter. Work on the feasibility study would follow immediately thereafter. Ultimately however, the value of Hope Bay may be greater in the context of a multi-asset portfolio and/or a stronger balance sheet, which is the driving force behind our strategic review process.”
TMAC has engaged CIBC Capital Markets and BMO Capital Markets as financial advisors.
TMAC announces a further step in Board renewal in accepting the resignation of Frank Davis, who has been a Director since March 2013. TMAC would like to thank Mr. Davis for his contributions and long service to the Company.
The Company has not made any decisions related to strategic alternatives at this time, and there can be no assurance that the evaluation of strategic alternatives will result in any transaction or change in strategy. The Company does not intend to comment further unless and until the Board of Directors of the Company has approved a specific course of action or the Company has determined further disclosure is appropriate or necessary.