TMAC Resources has initiated a strategic process to explore, review and evaluate a broad range of potential alternatives that include a potential sale or merger, a joint venture of the Hope Bay mine in Nunavut, Canada, introduction of a new significant strategic shareholder or various long-term financing alternatives.
“With the support of Resource Capital Funds and Newmont, which represents 58.5% of our outstanding shares, we have initiated a strategic process to explore potential alternatives to maximize shareholder value,” said Jason Neal, president and CEO of TMAC. “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.”
TMAC has been making operational performance improvements at the Hope Bay mine since construction was completed.
“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,” Neal said.
TMAC has engaged CIBC Capital Markets and BMO Capital Markets as financial advisors.