8 May 2020
TMAC Resources Inc. is pleased to announce that Shandong Gold Mining Co. Ltd. (SH:600547; SEHK:1787) (“SD GOLD”), through its wholly-owned, overseas subsidiary, Shandong Gold Mining (HongKong) Co., Limited, has agreed to purchase 12.0 million common shares of the Company at a price of C$1.75 per share, for a total investment of approximately US$15 millionin a non-brokered private placement (the “Private Placement”).
The Private Placement was agreed to concurrently with the Company’s execution of an agreement with SD GOLD pursuant to which SD GOLD agreed to acquire all of the outstanding shares of TMAC at a price of C$1.75 per share in cash (see press release of the Company dated May 8, 2020).
The proceeds of the Private Placement will be used to support the cost of the Company’s sealift this year. Closing of the Private Placement is subject to the receipt of approval from the Toronto Stock Exchange and is expected to occur on the business day following receipt of such approval. Newmont Corporation and Resource Capital Funds have confirmed they are not exercising their participation rights in connection with the Private Placement. The shares being issued under the Private Placement will represent approximately 9% of the pro forma shares outstanding.