Canada's TMAC Resources has signed a credit agreement with a syndicate of lenders led by Sprott Resource Lending Partnership (as Agent) and Morgan Stanley Capital Group Inc. with respect to the previously announced $120 million senior secured term loan facility.

Catharine Farrow, TMAC's Chief Executive Officer stated, "We are very pleased to have executed the credit agreement which, combined with the proceeds from our recently completed IPO, fully funds construction of our Hope Bay Project for first production by the end of 2016. We thank our Lenders for their support and confidence in the TMAC team."

The debt facility is for an aggregate principal amount of up to $120 million maturing on December 31, 2018, with advances under the facility bearing interest at 8.75% per annum, compounded and payable quarterly. Until June 30, 2017, the company will have the option to pay interest in cash or by way of an increase in the principal amount of the debt facility.

The debt facility is secured by a first ranking charge over all of the company's present and subsequently acquired property, subject to certain limited exceptions, and does not require the company to complete any gold hedging. The company can choose to prepay the debt facility prior to December 31, 2018, subject to defined prepayment fees if prepayment is made before July 23, 2017.

The company has issued the Lenders 1,900,000 share purchase warrants (the "Warrants"), with each Warrant being exercisable for one TMAC share at an exercise price of C$7.50 per share. The Warrants have a term of five years and can be accelerated by the Company in the event the trading price per TMAC share is higher than C$15.00 for 20 consecutive trading days at any time after the first year of completion of the debt facility.

The company has also issued the Lenders 12,000 gold call options (the "Gold Calls") with a term of five years at a strike price of US$1,140/oz. The company has the option to satisfy its obligations in respect of any gold call options exercised prior to June 30, 2017 in cash or by way of an increase in the principal amount of the debt facility.

TMAC Resources Inc. was incorporated in Ontario on October 30, 2012. The company's principal business objectives are the acquisition, exploration and development of precious metal resource properties.