GOLD: TMAC IPO reaps $135M

TORONTO – TMAC Resources has completed its initial public offering, raising $136 million in the process. The company issued 22.5 million common shares at a price of $6.00 per share. The shares are trading on the TSX under the symbol TMR.

The underwriting syndicate for the offering was led by BMO Capital Markets and CIBC, and included Dundee Securities, GMP Securities, National Bank Financial, Scotia Capital and TD Securities Inc. If the underwriters exercise the overallotment option in full, the total gross proceeds raised under the IPO will be $155.25 million.

TMAC will use the proceeds of the IPO to advance its Hope Bay gold project 65 km east of Bathurst Inlet, NU. A feasibility report has been done for the property, and it outlines both an open pit and underground operation with possible start-up in 2016 beginning with the Doris deposit and a 10-year life. The Hope Bay project has proven and probable reserves of 14.19 million tonnes averaging 7.7 g/t Au or 3.5 million contained oz of gold.

TMAC CEO Catharine Farrow said the company treasury now has over $350 million, an amount sufficient to complete construction at Hope Bay where the budgeted cost is about $272 million. (See TMACResources.com)