TMAC draws first $50 million on its $120 million term loan facility

By Wendy Van Sickle

Columbus, Ohio, Feb. 10 – TMAC Resources Inc. drew its first $50 million on the $120 million senior secured term loan facility it entered in July 2015, according to a Wednesday press release.

The syndicate of lenders was led by Sprott Resource Lending Partnership as agent and Morgan Stanley Capital Group Inc.

The draw will support the company’s execution of its tactical mine development plan at its Hope Bay Project in Nunavut, Canada.

The term loan facility matures on Dec. 31, 2018 with advances bearing interest at 8.75% per annum, compounded and payable quarterly. TMAC can draw on the facility in increments of at least $20 million until June 30, with an extension until Aug. 30, 2016 under certain conditions.

Until Sept. 30, 2017, the company will have the option to pay interest in cash or defer interest.

Monthly payments will equal 1/22 of the total amount outstanding at June 30, 2017 and will be made beginning on July 31, 2017 and ending on Nov. 30, 2018, with the balance due at maturity.

The facility is secured by a first ranking charge over all of the company’s present and subsequently acquired property, subject to certain exceptions, and does not require the company to complete any gold hedging, according to the release.

TMAC can choose to prepay the facility but will be subject to fees if prepayment is made before July 23, 2017.

TMAC Resources acquires, explores and develops precious metal resource properties and is based in Toronto.

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