Battle North Gold Corporation has executed a binding commitment letter with Macquarie Bank Limited for a senior secured term loan facility of US$40 million  to be used to fund the construction of the 100%-owned, shovel-ready Bateman Gold Project in Red Lake, Ontario, Canada. The proceeds of the Credit Facility, together with cash currently on the Company's balance sheet, is expected to fully fund the Project to Commercial Production.

Macquarie has completed the necessary credit approval process to issue the Commitment Letter. However, the Credit Facility remains subject to certain customary conditions precedent and to negotiation and execution of customary definitive documentation, including a credit agreement and related security documents, which the Company and Macquarie anticipate will be completed by end of the first quarter of 2021.

The Company's Board of Directors has granted preliminary approval for certain critical-path Initial Capital expenditures (including portal construction and ramp development from surface, ammonia treatment plant construction, tailings management facility upgrades, and camp upgrades) not to exceed C$13 million of the C$109 million Initial Capital cost of the Project1. Full development of the Project, including the balance of the Initial Capital cost of the Project, remains subject to further approval of the Company's Board of Directors following completion of the Credit Facility.

On or about December 24, 2020, the Company plans to fully repay its existing approximate C$15 million Loan Facility with Sprott Private Resource Lending (Collector), L.P.

Macquarie Credit Facility

Per the Commitment Letter, key terms and conditions of the Credit Facility include:

• Facility Amount: US$40 million.
• Term: 5 years, ending March 31, 2026.
• Mandatory Equity Contribution: Prior to any drawdown above the first US$5 million, the Company will have to spend C$50 million on the Project (excluding any Corporate and/or exploration costs).
• Repayment Schedule: Quarterly, beginning March 31, 2023, which includes a 24-month grace period until Project Completion2.

Annual Interest Rate:

• Before Project Completion: US$ LIBOR + 5.25%.
• After Project Completion: US$ LIBOR + 4.25%. 
• US$ 3-Month LIBOR rate is currently 0.24% (as at December 18, 2020).

The Credit Facility is subject to additional terms and conditions and the execution of definitive documentation which the parties expect to occur by end of the first quarter of 2021.

Repayment of the Sprott Loan Facility

On or about December 24, 2020, Battle North intends to repay the entire outstanding principal, accrued interest and interest premium outstanding under the Sprott Loan Facility, resulting in a cash outlay of approximately C$15.0 million.

Advisors

In connection with the Credit Facility, Battle North received independent advisory from Cutfield Freeman & Co. and Cassels Brock & Blackwell LLP acted as legal counsel.