TMAC Resources owns the Hope Bay property. (Photo: TMAC)

TMAC Resources Inc. was recently informed that the Governor in Council has issued an order under the Investment Canada Act (Canada) directing Shandong Gold Mining Co. Ltd. and its affiliate not to proceed with the transaction with TMAC. Shandong would have acquired 100% of TMAC. The transaction, which was announced on May 8, was approved 97% by TMAC shareholders. TMAC and Shandong are in discussions regarding termination of the transaction, according to the company.

“While we are disappointed with the outcome, we are very pleased that TMAC achieved significant operation improvements at Hope Bay,” TMAC President and CEO Jason Neal said. “We will continue to build on these improvements while considering options to manage our balance sheet.”

He continued that the Hope Bay gold belt holds “substantial value” with long life production potential that presents a significant development opportunity.

The company is currently evaluating mining and processing plant alternative scenarios with the objectives of reducing capital expenditures and financing requirements compared with the 2020 PFS, while maximizing value.

Neal said the company expects to have sufficient cash on hand to fund the 2021 sealift, but not to fully repay maturing debt recently extended to June 30, 2021.

“We have the required consumables, materials and supplies to continue operating at current levels until the third quarter 2021 sealift arrives, including recommencement of development at Doris Central and Madrid early in 2021 and have turned our focus to addressing our June debt maturity,” he added.

In other news, COO Gil Lawson has left the company. The Hope Bay operations have been reporting directly to Calum Semple, executive vice president, operations and a director of TMAC, since he joined the company in February.