Newmont signs letter of Intent with TMAC resources for proposed acquisition of Hope Bay Project in Nunavut
Tuesday, Dec 18, 2012
DENVER, Dec. 17, 2012 /PRNewswire/ -- Newmont Mining Corporation of Canada Limited (NMCCL) ("Newmont" or "the Company") and TMAC Resources Inc. ("TMAC") today announced the signing of a binding Letter of Intent ("LOI") to acquire Newmont's Hope Bay Project in Nunavut, Canada. TMAC is a privately held mining exploration and development focused company comprised of the former senior executives of FNX Mining Company Inc. and headed by Terry MacGibbon, founder of FNX Mining Company Inc. and Chairman of Torex Gold Resources Inc. TMAC management has an exceptional track record for developing high grade, profitable underground mines. The proposed transaction is subject to a number of conditions, including execution and delivery of an acquisition agreement, completion of an initial equity financing, execution of an investor rights agreement, and receipt of all required regulatory and third party approvals.
"We are pleased to reach this milestone and believe that TMAC is the right partner to improve prospects for near-term development of the Hope Bay Project," said Randy Engel, Executive Vice President, Strategic Development of Newmont. "TMAC's management team has a proven track record of developing projects with similar characteristics, both profitably and responsibly, while maximizing value for shareholders and other stakeholders. We look forward to developing a strong, long-term partnership as a significant shareholder of TMAC."
Mr. Terry MacGibbon, Executive Chairman of TMAC, stated, "I am very excited to be working with Newmont and our Inuit partners to develop the full potential of the highly prospective Hope Bay Project. I am also very excited about putting back together and working with many of the former FNX executive team who helped make that venture such a success; particularly, Dr. Catharine Farrow, who will be TMAC's CEO.
Catharine made a tremendous contribution to FNX, QuadraFNX and most recently at KGHM International as the Chief Operating Officer. With her exploration and operating expertise and experience, she is the ideal person to lead the future exploration and development of what we expect will be Canada's next gold mining camp. By applying best-in-class industry standards and processes and leveraging the TMAC team's proven entrepreneurial approach to profitable, low cost, staged mine development supported by geoscience driven exploration, we believe the Hope Bay Belt has great potential to be Canada's next major gold mining camp and a long-term, profitable and environmentally responsible gold producer for the benefit of all stakeholders."
The parties have agreed that the LOI will terminate on March 31, 2013 unless earlier superseded by the acquisition agreement. There can be no assurance that the proposed transaction will be completed.
Advisors and Counsel
Newmont's financial advisors are BMO Capital Markets and J.P. Morgan, and its legal counsel is Lawson Lundell LLP. TMAC's financial advisor is CIBC World Markets Inc., and its legal counsel is Cassels Brock & Blackwell LLP.
Founded in 1921 and publicly traded since 1925, Newmont (www.newmont.com) is one of the largest gold companies in the world. Headquartered in Colorado, the Company has more than 43,000 employees and contractors, with the majority working at core operations in the United States, Australia, Peru, Indonesia, New Zealand and Ghana. Newmont is the only gold company listed in the S&P 500 index and in 2007 became the first gold company selected to be part of the Dow Jones Sustainability World Index. Newmont's industry leading performance is reflected through high standards in environmental management, health and safety for its employees and creating value and opportunity for host communities and shareholders.
Source: Newmont Mining Corporation of Canada Limited