Shandong Gold Mining Co., Ltd.

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SD-Gold’s Acquiring 100% Equity of TMAC Resources Inc., Opening A door to A "Gold Country":

2020.05.09 1384 Word size A - A A +

  On May 8, the video signing ceremony between Shandong Gold Group (SD-Gold) (SH: 600547, HK: 1787) and TMAC Resources Inc. was held simultaneously in Jinan, China and Toronto, Canada.

  Chen Yumin, Chairman of SD-Gold attended the signing ceremony and delivered a speech. On behalf of Shandong Gold Mining Co., Ltd. and its overseas wholly-owned subsidiary Shandong Gold Mining (Hong Kong) Co., Ltd., Li Guohong, General Manager of SD-Gold and Chairman of Shandong Gold Mining Co., Ltd. signed an Arrangement Agreement and a Synchronous Private Placement Subscription Agreement with Jason Neal, CEO of TMAC Resources Inc., which specify that Shandong Gold Mining (Hong Kong) Co., Ltd. will subscribe for part of newly issued shares of TMAC Resources Inc., and its  subsidiary newly established in Canada will acquire all the remaining shares of TMAC Resources Inc. in cash. After this transaction is completed, Shandong Gold Mining (Hong Kong) Co., Ltd. will hold a total of 100% equity of TMAC Resources Inc. directly and indirectly.

  Chen Yumin expressed his heartfelt thanks to the management team of TMAC Resources Inc., the M&A team of both parties, and all leaders and friends from all walks of life who care and support this M&A. He said that SD-Gold is a large state-owned enterprise in Shandong Province, and it has world-class gold resource reserves, advanced gold mining and smelting technology, and open and inclusive corporate culture. With gold production, resource reserves, economic benefits, and technical personnel all at the forefront of China's gold industry, SD-Gold is speeding toward the strategic goal of "striving to be the world's top ten gold mining enterprise". He believes that the acquisition of TMAC Resources Inc. will further consolidate its own strengths and synergies, and accelerate the building of a world-class enterprise with global competitiveness. After the successful completion of this project, SD-Gold will fully respect the Canadian market norms and corporate governance rules, unreservedly invest in technology, capital and talent, comprehensively strengthen the company's production and operation management, and further increase the operating level, earning capacity, and asset value.

  TMAC Resources Inc., headquartered in Canada and listed on the Toronto Stock Exchange (stock code: TMR), is a Canadian high-growth gold mining company, and mainly specializes in the exploration, mining and production of gold resources. Its core asset - the Hope Bay project (100% equity) was completed and put into operation in 2017, and now has produced a total of about 9.5 tons of gold. Data released by TMAC Resources Inc. on its official website shows that, according to the Canadian NI 43-101 standard, the project has proven + probable reserves of 3.545 million ounces (110.3 tons) of gold with an average grade of 6.5 g/t, measured + indicated resources of 5.173 million ounces (160.9 tons) of gold with an average grade of 7.4 g/t, and inferred resources of 2.127 million ounces (66.2 tons) of gold with an average grade of 6.1 g/t, as of December 31, 2019. The said resources include reserves. The project is located in a world-class greenstone metallogenic belt in northern Canada, enjoying good prospects for increase in reserves.

  This acquisition is another important international gold project of SD-Gold following the acquisition of the Veladero Gold Mine in Argentina in 2017 and the establishment of a strategic alliance with Barrick Gold Corporation; it is also the first project of SD-Gold in the North America after SD-Gold set up a Canadian representative office in 2019 to start business expansion in the North American and even in the world. This acquisition marks that SD-Gold has opened the door to a famous gold producing area in Canada, a "gold country". It is not only an important decision for SD-Gold to firmly implement "go global" strategy and achieve the vision of "building an industry-leading and world-class gold mining company", but a key move to broaden the global layout of the gold assets in production and realize the preservation and appreciation of state-owned assets, and lays a solid foundation for advancing overseas development and international cooperation, and turning into reality the strategic goal of "striving to bethe world's top ten gold mining enterprise" during the "13th Five-Year Plan" period.

  SD-Gold executives attended the signing ceremony.