HOPE BAY
Higher than expected demand for new shares of development company TMAC Resources means the company will be able to proceed with its Hope Bay gold mine project and definitely do more exploration near the site, according to president Catherine Farrow.

Lee Winsor, left, Des LeDrew, Randy Roberts, Blaine Jesso and Bruce Currie, all workers for Kitikmeot Cementation and Mine Development under contract to TMAC Resources. The company is now trading under the stock symbol "TMR." - photo courtesy of TMAC Resources

She said it was surprising that the increase in the expected amount raised from the initial public offering - that is, the amount they were hoping to make from the sale of 22.5 million shares - rose from $105 million to $135 million.

"It provides comfort to shareholders and a little bit of cushion," she told Nunavut News/North. "It's going to beneficial for us to advance our mine life."

Farrow said that the company would love to be able to add more years of mine life at Hope Bay's Doris site as well as expand the ounces of gold available at the Madrid site.

As for exploration, the additional $30 million in fundraising will allow TMAC Resources to examine the potential of the mineral belt at Hope Bay.

"We think that is an expectation from the market as well," Farrow said. "People very much want us to put our exploration dollars (to) work."

TMAC Resources pursued the process of public financing after feeling like it had already exhausted all of its options for private investment.

"The mining capital markets are still a very tough place," Farrow said.

The funds raised from the sale of the 22.5 million shares will go toward its Hope Bay gold mine project located 170 km southwest of Cambridge Bay.

"The Hope Bay Belt Agreements have the potential to provide significant employment, contracting, training and other benefits to Inuit of the Kitikmeot Region," stated Kitikmeot Inuit Association president Charlie Evalik in a news release in April.

On June 29, TMAC announced it had filed the final document for its first public offering of shares. Citing strong demand, the company will now offer 22.5 million common shares at $6 each for a total of $135 million. Its pre-feasibility study stated an updated mine life estimate of 20 years and yield of 3.2 million ounces of gold reserves.

Farrow called the show of support from investors tremendous, adding that TMAC's debut on the Toronto Stock Exchange on July 7 was the first initial public offering by a mining company in many years.

Now that the company has officially started trading under the symbol "TMR" and funding for the Hope Bay gold mine project has been finalized, Farrow said the focus will be on preparing the budget for approval from its board as well as guidance for the 2015-2016 work season, including any exploration work.

The company will undertake geophysical surveys at the end of this month and drilling will resume in August.

While the company spent years following the project's acquisition from Newmont Mining doing work leading up to the final feasibility studies and the documents leading to the first sale of its shares, Farrow said this point is really what her team has wanted to do.

"Now it's important for us to deliver the project," she said. "There a lot of people watching us."

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