THEMAC Resources Group Limited

THEMAC Resources Group Limited

July 28, 2011 13:16 ET

THEMAC Resources Group Enters into Amending Loan Agreement with Tulla Resources Group Pty Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 28, 2011) - THEMAC Resources Group Limited ("THEMAC" or "the Company") (TSX VENTURE:MAC) is pleased to announce that, on July 15, 2011, the Company has entered into an Amending Loan Agreement (the "Amending Agreement") with Tulla Resources Group Pty Ltd. ("Tulla"). Tulla will increase its loan under the original February 25, 2011 agreement (the "Original Agreement") with THEMAC from its original amount of CAD$5,250,000 to CAD$10,000,000. The advance bears simple interest at 10% per annum and is repayable on or before June 4, 2012.

Tulla has already advanced an additional $550,000 beyond the amount specified under the Original Agreement.

"The increase in loan facilities is expected to meet THEMAC's working capital requirements for the balance of the 2011 calendar year", said Barrett Sleeman, President and CEO of the Company. Prime application of these funds will be to extend the drilling program currently underway, ongoing permitting costs and to fund the pre-feasibility study announced to the market on July 15 2011.

The advance from Tulla is a related party transaction under TSX Venture Exchange Policy 5.9 because Tulla is a control person of the Company. The Company is relying on the exemption from the requirement to obtain a valuation on the basis that the Issuer is not listed on a market specified under MI 61-101, and the Company is relying on the exemption from minority shareholder approval provided under MI 61-101 in relation to loans made on commercially reasonable terms which are not convertible into voting or equity securities of the Company.

The Amending Agreement and loan advance were approved by the independent directors of the Company.

About the Copper Flat Project

Copper Flat is a former producing mine located approximately 20 miles southwest of Truth or Consequences in Sierra County, State of New Mexico, USA. Permitting for a return of the project to production is at an advanced stage, and a prefeasibility study is in progress and targeted for completion during 2011.

The Copper Flat project is a porphyry copper-molybdenum-gold-silver deposit. The deposit has NI43-101 Indicated Mineral Resources of 107 million short tons grading 0.303% copper and 0.01% molybdenum for 645 million lbs copper and 21.4 million lbs molybdenum, plus Inferred Mineral Resources of 46 million short tons grading 0.24% copper and 0.006% molybdenum for 222 million lbs copper and 5.6 million lbs molybdenum.

The gold and silver content of the deposit is evidenced by historic production and metallurgical test work, and gold and silver are targeted for incorporation into the deposit's NI 43-101 Mineral Resource statement following completion and interpretation of a re-assay program using historic drill pulps.

An NI 43-101 Preliminary Economic Assessment ("PEA") dated June 30, 2010 and updated February 25, 2011 has been completed for Copper Flat and can be viewed on SEDAR.

Civil infrastructure in place at Copper Flat includes a tailings dam, largely pre-stripped open pit, power lines, water well field and pipeline, access roads, diversion channels and building foundations. The project land package comprises in excess of 1,200 hectares. For more information visit

About THEMAC Resources Group Limited

THEMAC is a copper development company with a strong management team and as of May 18, 2011, a 100% ownership interest in the Copper Flat copper-molybdenum-gold-silver project in New Mexico, USA. We are committed to bringing the closed copper mine, Copper Flat, in Sierra County, New Mexico back into production with innovation and a sustainable approach to mining development and production, local economic opportunities and the best reclamation practices for our unique environment. The Company is listed on the TSX Venture Exchange (ticker: MAC) and has issued share capital of 74,117,622 common shares (fully diluted share capital 134,523,241).

For more information please visit or review the Company's filings on SEDAR (

Neither the TSX Venture Exchange (the "TSXV") nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) has reviewed, nor do they accept responsibility for the adequacy or accuracy of, this release.

Contact Information

  • THEMAC Resources Group Limited
    Barrett Sleeman, P. Eng.
    Chief Executive Officer
    (505) 274-1638
    (604) 806-6112 (FAX)