TORONTO--(BUSINESS WIRE)--TMAC Resources Inc. (TSX: TMR) (“TMAC” or the “Company”) has signed a revised credit agreement (the “Revised Credit Agreement”) with Sprott Private Resource Lending (Collector), LP and associated lenders (“Sprott”) to provide for total borrowings of US$160 million. The additional funds to increase the original senior secured term loan facility Credit Agreement entered into in July 2015 to US$160 million was received today and allows TMAC to finance the significant, seasonal expenses incurred during the summer sealift period and the revisions to the term and repayment schedule of the previous senior secured term loan facility credit agreement entered into in July 2015 accommodates the Company’s plans to develop the Madrid and Boston deposits over the next five years.
Further details regarding the Revised Credit Agreement are as set forth in the Company’s news release issued July 14, 2017.
The 1,900,000 share purchase warrants issued to Sprott in consideration for entering into the Revised Credit Agreement have an exercise price of $15.43 per share and expire July 26, 2022.
ABOUT TMAC RESOURCES
TMAC holds a 100% interest in the Hope Bay Project located in Nunavut, Canada. TMAC is an emerging gold producer with the Doris Mine pouring first gold in the first quarter of 2017 and achieving commercial production in the second quarter of 2017. The Madrid and Boston properties are expected to commence production in 2020 and 2022, respectively. The Company has an experienced, expert board of directors combined with exploration, development and operating teams with extensive track records of discovering, developing and operating high grade, profitable underground mines. TMAC’s shares trade on the Toronto Stock Exchange under the trading symbol TMR.
This release contains "forward-looking information” within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. “Forward-looking information” includes statements that use forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, the returns from the Hope Bay Project being greater than the cost of capital under the Revised Credit Agreement, the timing for bringing Madrid and Boston into production and the ramp up at Doris and anticipated seasonal expenditure.
Forward-looking information is not a guarantee of future performance and management bases forward-looking statements on a number of estimates and assumptions at the date the statements are made. Furthermore, such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors, which may cause the actual plans, intentions, activities, results, performance or achievements of the Company to be materially different from any plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See “Risk Factors” in the Company’s Annual Information Form dated February 23, 2017 filed on SEDAR at www.sedar.com for a discussion of these risks.