TMAC Resources has entered into a term sheet with Sprott Private Resource Lending for total borrowings of $160 million.

The amendments to the original agreement result in an amended and restated agreement comprising two tranches: tranche one for $30 million, and tranche two for $130 million. The original credit agreement had an aggregate principal amount of $120 million, but with interest had totaled $130 million.

The tranche one will have a single bullet repayment on January 31, 2019 and the tranche two has a term of up to five years, maturing on July 31, 2022,.

The approximately $30 million of additional funds allow TMAC to finance the significant seasonal expenses incurred during the summer sealift period. The revisions to the term and repayment schedule of the existing senior secured term loan facility entered into in July 2015 accommodates the company’s plans to develop the Madrid and Boston deposits over the next five years.

Morgan Stanley Capital Group will no longer be a lender under the credit agreements.

Jim Grosdanis, managing partner of Sprott, commented, “As one of the largest investors dedicated to the natural resource sector, Sprott is excited to continue its partnership with TMAC. We look forward to working with the management team on the development of Hope Bay, one of the premier gold assets in 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.