TMAC Resources Inc. T.TMR

Critical date review - I think I now understand

[15Stanmore]

Following a helpful exchange of emails with the VP of Investor Releations at TMAC, this is now my understanding of the critical dates involved in the SD Gold takeover plan of arrangement.

October 15, 2020 - requirement for a National Security Review is announced by the federal government starting a 45 day timeline for the review to be completed - this sets the deadline as November 29th, with a likely release on Monday November 30, 2020.

November 27, 2020 - the government announces it will not meet the 45 day timeline for the NSR and exercises its sole discretion right to extend the timeline by 45 days - this sets the new deadline as January 14, 2021 which is a Thursday so the NSR results must be released by that date.

January 14, 2021 - the government announces the results of the NSR.

If no issues of national security are found that would decide against the takeover, the review now reverts back to the "net benefits" standard assessment. This has a 30 day timeline, which means the ruling would not have to be released until February 13, 2021. This happens to be 5 days AFTER the drop dead date of the current plan of arrangement.  Even if this net benefit assessment is found to be positive, if it is not delivered by February 8, 2021 the TMAC Board coud walk away from the deal without penalty.

In the alternative, if no issues of national security are found that would decide against the takeover, the government can still pass the matter to Cabinet for a second opinion and the Cabinet has 20 days to pass judgement, with a deadline of February 4, 2021. If Cabinet deems the deal NOT TO BE in the Country's best interest, the deal is dead.

If Cabinet does not overturn the positive NSR assessment, the review now reverts back to the "net benefits" standard assessment. This has a 30 day timeline, which means the ruling would not have to be released until February 24, 2021. This is 16 days AFTER the drop dead date of the current plan of arrangement.  Even if this net benefit assessment is found to be positive, if it is not delivered by February 8, 2021 the TMAC Board coud walk away from the deal without penalty.

My guess is someone in the PMO's office fully understands these timelines and has advised Mr. Tredeau that by simply dragging out the timelines he can still be "nice" to his admirable CCP friends, approve the deal in principle, but do so with a release date after February 8, 2021. This would allow TMAC to walk away from the Chinese takeover and consider other likely better-for-sharholder deals waiting in the wings, deals that the government would have no problem quickly approving.

In my opinion, given the continuing strength of the price of gold, and the improved production experience in the mine and mill, over the last 9 months, a better than $1.75 offer is clearly of interest to a non-CCP buyer, and to the Board and management of TMAC.

[nic_jordan]

Thank you for posting this 15Stanmore ! Every bit of clarification concerning this situation is much appreciated.

[15Stanmore]

Hello Nic. I am not sure why the Company has chosen not to carefully spell out the timelines and related contingencies in the straight forward way as was done in my recent post. I know the plan of arrangement has some pretty onerous terms that prevent current TMAC management from doing anything that might upset the succesful closing of the SD Gold deal. Perhaps presenting factual information that

[schocor]

Good post and thank you for it. We all needed this info and I can see it leading me to an investment on this company - finally.