Toronto – (Commercial wire) – DMAC Resources Inc. (DSX: DMR) (“D.M.A.C.”Or“Company”) It has been announced that the Governor of the Council has issued an order Investment Canada Law (Canada) Shandong operates Gold Mining Co., Ltd. and its subsidiary (“Shandong”) The plan of the arrangement should not be implemented (“Transaction”). As a result, the transaction between DMAC and Shandong will not continue. DMAC and Shandong are in discussions over the suspension of the transaction.
Jason Neil, President and CEO of DMIC, said, “As announced on May 8, 2020 and approved by 97% of our shareholders on June 26, 2020, the transaction in which Shandong acquires 100% DMAC is regulatory approval and will not proceed. ”
Jason Neil continued, “While we are disappointed with the result, we are very pleased that DMAC has achieved significant operational improvements at Hope Bay. We will continue to develop these improvements considering the options for managing our balance sheet. We continue to believe that the Hope Bay Gold Belt has significant value with longevity productivity providing a significant growth opportunity. We have developed mining and processing plant alternative scenarios with the aim of reducing capital costs and reducing financial requirements compared to 2020 PFS and are currently adding value. Due to our September 30, 2020 unrestricted C $ 71.5 million and current positive cash flow, we expect to have enough cash on hand to finance 2021 Sealift, but will not be able to repay the maturity loan, which was recently extended until June 30, 2021. We have the consumer goods, materials and supplies we need to continue operating at current levels until the arrival of the third quarter 2021 Shift, including the resumption of growth in Doris Central and Madrid in early 2021, and we have turned our attention to addressing our June debt maturity. ”
Jason Neil concluded, “I would like to thank the hard work and dedication of DMAC staff and contractors this year as we have dealt with the unprecedented Govt-19 epidemic and transaction uncertainties, while at the same time improving our security performance and productivity. I would like to thank the leadership of the Inuit communities and Nunavut, our business partners and other stakeholders for their patience during the regulatory review process. ”
Gil Lawson, CEO of TMIC, has left the company. The Board of Directors would like to thank DMAC for its commitment since joining the role in August 2017. Hope Bay has been reporting directly to operations, executive vice president, operations and director of the DMAC, Period Semble. Joined the company in February 2020. Mr. With Lawson out, Kalam Semble will now only report to the president and CEO.
About TMAC RESOURCES INC.
DMAC operates the Hope Bay property located in Nunavut, Canada. Property and operations are remote, but not isolated, and are served by both port and airway. Hope Bay is an 80km by 20km Archaean Greenstone Belt that has been explored by BHP, Miramar, Newmont and TMAC for over 30 years. At that time, more than $ 1.5 billion was spent on research and evaluation, surface infrastructure and mine and process plant development. DMAC began producing gold in early 2017 from its first mine, Doris, in Hope Bay, processing gold at the Doris processing plant, which originally had a nameplate capacity of 1,000 dBD and a capacity of 2,000 dBD by 2018. Extended up the midway. D.M.A.C. Significantly deepen, further develop resources by prioritizing more than 90 other regional goals identified. DMAC is now allowed to manufacture from both Madrid and Boston.
This release contains “forward looking information” within the meaning of applicable bond laws, which must be closed by the secure ports created by those laws. “Looking forward information” includes statements that use perspective words such as “may”, “preference”, “expect”, “expect”, “believe”, “possible”, or its negative or other variations. Or comparable word. The information in this release looks forward to reports related to the termination of the transaction, DMIC’s objectives and its balance sheet, reports on its operations, possibilities for the Hope Bay Gold Belt, mining and processing alternatives, its ability to finance 2021 Silift and its operations and debt. Ability to address.
“Forward looking information” is not a guarantee for perspective orientation reports on multiple ratings and assumptions on the date of publication of future performance and management sites reports. Furthermore, such “perspective information” includes a variety of known and unknown risks, uncertainties, and other factors that may lead to actual plans, objectives, activities, results, performance, or revealed or implicit achievements. See “Risk Factors” in the Company’s Annual Information Form dated May 12, 2020, filed with SEDAR www.sedar.com For discussion of these risks.