TMAC Resources entered into an agreement with the lenders to extend the period during which TMAC can draw on the remaining $70 million of its debt facility from June 30, 2016 to December 31, 2016.

The amendment to the credit agreement for the debt facility extends the availability period during which the company can draw under the debt facility from the first currently available extension period of August 31, 2016 to December 31, 2016. In conjunction with the above, TMAC anticipates drawing a portion of the $70 million in July 2016. Additional draws are anticipated as funds are needed.

On July 23, 2015, TMAC entered into the credit agreement with a syndicate of lenders led by Sprott Resource Lending Partnership and Morgan Stanley Capital Group with respect to a senior secured term loan facility for an aggregate principal amount of up to $120 million maturing on December 31, 2018, with advances under the debt facility bearing interest at 8.75% per annum, compounded and payable quarterly.

The debt facility is secured by a first ranking charge over all of the company’s present and after-acquired property, subject to certain limited exceptions.

TMAC issued the lenders 1,900,000 share purchase warrants, with each warrant being exercisable for one common share at an exercise price of $7.50 per common share. In addition, the company issued the lenders call options for 12,000 ounces of gold with a term of five years expiring July 23, 2020 at a strike price of $1,140/ounce. The company has the option to satisfy its obligations with respect to 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 is a Canadian-based mineral exploration and development company.