Agnico Eagle Will Acquire TMAC Resources
The offer from Shandong was rejected back in late December by the Governor in Council, which issued an order under the Investment Canada Act (Canada) directing Shandong Gold Mining Co. Ltd. and its affiliate not to proceed with the transaction. “We are very pleased to have the opportunity to bring our extensive northern operational and community experience to the Hope Bay Mine and the Kitikmeot Region of Nunavut,” Agnico Eagle Vice Chairman and Chief Executive Officer Sean Boyd said. “Together with the TMAC team and our Nunavut partners, we look forward to advancing exploration and expansion initiatives to realize the full potential of the mine and its large unexplored land package.”
Resource Capital Funds (RCF), Newmont Corp. (Newmont), Shandong and all directors and officers of TMAC, collectively holding approximately 62.3% of the current outstanding TMAC common shares, have agreed to not interfere with the transaction. TMAC President and Chief Executive Officer Jason Neal expressed excitement regarding the transaction. “The acquisition being completed by Agnico Eagle is a great outcome for all stakeholders,” he said. “Agnico Eagle is one of the strongest gold producers internationally, a Canadian champion and has been operating in Nunavut for more than a decade with a great track record with communities, employees and the environment.”
The board of directors of TMAC has unanimously approved the transaction and it is expected to close on or before February 8, 2021. TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay, and processed gold at the Doris processing plant, which originally had nameplate capacity of 1,000 tons per day (t/d) and expanded to 2,000 t/d midway through 2018. TMAC is now permitted to produce from both Madrid and Boston.