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National security review of TMAC and Shandong deal extended

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Image credit: TMAC.

(Kitco News) - TMAC Resources (TSX: TMR) today announced that the national security review under the Investment Canada Act of the plan of arrangement with Shandong Gold Mining has been extended for a further period of up to 45 days.

The transaction was announced on May 8, 2020. Shandong has agreed to acquire all of the outstanding shares of TMAC at a price of C$1.75 per share in cash.

The total equity value pursuant to the transaction is approximately US$149 million on a fully diluted basis. The offer price represents a premium of 52% to TMAC’s 20-day volume-weighted average price as at May 6, 2020.

TMAC operates the Hope Bay property located in Nunavut, Canada. The property and operations are remote but not isolated, serviced by both a port and airstrip. Hope Bay is an 80 km by 20 km Archean greenstone belt that has been explored by BHP, Miramar, Newmont and TMAC over a period spanning more than 30 years.

TMAC’s gold production was 18,420 ounces during the three months ended September 30, 2020, a 49% decline over Q3 2019.

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