TMAC Resources Makes First Draw Under US$120 Million Senior Secured Term Facility

TORONTO, ON--(Marketwired - February 10, 2016) - TMAC Resources Inc. (TSX: TMR) ("TMAC" or the "Company") announces that it has made its first draw in the amount of US$50 million under the credit agreement (the "Credit Agreement") entered into with a syndicate of lenders including Sprott Resource Lending Partnership (as Agent) and Morgan Stanley Capital Group Inc., in July 2015 with respect to the US$120 million senior secured term loan facility (the "Debt Facility").

Dr. Catharine Farrow, "Our surface and underground work, completed in 2015, and the detailed planning for the pre- and post-start of production period enabled us to develop an improved tactical mine development plan which we detailed in our news release issued January 14, 2016. This first draw under the Debt Facility keeps TMAC on track as we execute on this tactical plan which continues according to schedule. We thank our Lenders for their support and confidence in the TMAC team and the project. TMAC is unique in that it is already conducting underground mining and by the end of 2016, we will have had fifteen months of mine development, stope testing and mine production before we commission our processing plant at Doris. All of these factors, together with our funding, are designed to de-risk our ramp-up to full site production with what is expected to be a comfortable cushion, both operationally and financially."

The Debt Facility

The Debt Facility is for an aggregate principal amount of up to US$120 million maturing on December 31, 2018, with advances under the facility bearing interest at 8.75% per annum, compounded and payable quarterly. Until September 30, 2017, the Company will have the option to pay interest in cash or defer such interest, in which case such interest will continue to be outstanding and accrue interest at the same rate as stipulated in the Debt Facility until paid in full.

Monthly payments will equal 1/22 of the total Debt Facility outstanding as at June 30, 2017 (including any deferred interest and obligations in relation to the gold call options previously issued on July 23, 2015), and will be made beginning on July 31, 2017 and ending on November 30, 2018, with a final payment equal to the remaining amount owed under the Debt Facility on December 31, 2018. The Company can draw under the Debt Facility until June 30, 2016 (with an extension to August 30, 2016 under certain conditions), subject to a minimum amount per advance of US$20 million.