30 April 2019
TMAC Resources Inc. has signed an amendment to its amended and restated credit agreement entered into on July 26, 2017 (the “Credit Agreement”) with Sprott Private Resource Lending (Collector), LP and associated lenders (the “Sprott Lenders”). The outstanding principal is US$117 million after repaying an additional US$8.8 million during the first quarter of 2019. The amendment eliminates all principal payments until April 1, 2020, totalling US$26 million (approximately C$35 million). Quarterly principal repayments of US$2.5 million are scheduled to recommence on April 1, 2020. The remaining principal balance is due on December 31, 2020, with TMAC having an option to extend the term by six months to June 30, 2021.
Jason Neal, TMAC’s President and Chief Executive Officer, stated, “These amendments to the Credit Agreement provide additional financial flexibility for the next two years through both significantly reduced principal amortization and easing of covenant restrictions. The cash borrowing cost is slightly reduced, though Sprott achieves equity exposure through repricing of its current warrants. Sprott has been an excellent partner to TMAC through our extended ramp up, and as we transition to optimization we appreciate the endorsement demonstrated through these amendments.”