TVI Affiliate Secures US$23 Million Low Interest Financing for
Development of its Balabag Gold/Silver Project
TSX: TVI OTCQX: TVIPF
CALGARY, March 12, 2013 /CNW/ - TVI Pacific Inc. (TSX:
TVI) (OTCQX:
TVIPF) ("TVI" or the "Company"), announced today that its
Philippine
affiliate, TVI Resource Development (Phils.) Inc. ("TVIRD") has
signed
a nonbinding term sheet (the "Term Sheet") with Metropolitan Bank
and
Trust Company ("Metrobank" or the "Lender") for a US $20 million term
loan facility (the "Facility") for its Balabag Gold/Silver
project,
located approximately 75 kilometres (47 miles) east-northeast of
TVI's
Canatuan mine on the Island of Mindanao, Philippines. Metrobank
previously provided debt financing to TVIRD for its Canatuan Mine,
all
of which has been fully repaid. Measured by assets, Metrobank is
the
Philippines' second largest bank.
The purpose of the Facility is to support the development of
the
proposed Balabag Mine by providing TVIRD with additional
working
capital funding for construction and commissioning activities and
to
support mining and processing activities.
The Term of the Facility is three (3) years and provides for a one
(1)
year grace period before repayments are to commence, spread
equally
over eight quarterly periods, beginning at the end of the
5th quarter. The interest rate of the Facility is
to be set at 90-day
Libor plus 250 basis points (approximately 3%), to be fixed on
a
quarterly basis.
The Facility is accompanied also by an additional US $3 million Letter
of Credit ("LOC"), available to TVIRD for a 180 day period at
the
prevailing market rate.
The Facility and LOC contemplate that the obligations of TVIRD
under
those instruments will be secured by the Balabag off-take agreement
and
Balabag Mining Production Sharing Agreement (MPSA), a Continuing
Surety
Agreement to be provided by TVI, the equipment and facilities
at
Balabag, and a US $5 million deposit
that will be releasable upon the
Balabag mine site moving into operation.
Mr. Clifford M. James, Chairman and
CEO of TVI states, "We are pleased to conclude these financing
discussions with Metrobank
and to be provided the opportunity to move forward with Balabag
once
the remaining required permits are received. With the Term
Sheet, we
have addressed a further integral step in our efforts to
establish
commercial production at our Balabag Gold project."
Balabag Project Development Status
TVIRD continues to progress with success the critical elements
to
advance the development of the Balabag project, targeting plant
construction by the second half of 2013 and first doré production
by Q1
of 2014. Significant achievements include:
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a.
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The removal of all remaining illegal miners from the property. This
is
now complete with the enforcement of the Cease and Desist Order
(CDO)
issued by the Department of Environment and Natural Resources
(DENR).
The CDO was enforced by the inter-agency efforts of the
Provincial
Government, Mines and Geo-Sciences Bureau (MGB), Environmental
Management Bureau (EMB), the Philippine National Police, the
National
Bureau of Investigation (NBI) and the Armed Forces of the
Philippines
on 23-25 October 2012.
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b.
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Endorsement of the Environmental Impact Statement (EIS) in February
2013
by the EMB technical review committee to the DENR office for
the
approval and issuance of the Environmental Compliance
Certificate
(ECC). The Declaration of Mining Project Feasibility document
package
is expected to be completed by the second quarter 2013 following
the
approval of the ECC.
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c.
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Completion of an all-weather 10-km access road to the mine as part
of
the pre-development work. This road will serve as the main access
for
equipment and product transport.
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d.
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Completion of plant design and equipment sizing. This was part of
an
update of the internal feasibility study that was previously
submitted
to the MGB.
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e.
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Confirmation of community and Local Government Units' (LGU)
acceptance
and support through the continuing establishment of Community
Relations
and Development Programs.
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f.
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Recommencement of the exploration drilling program in January
2013,
enabling the Company to continue its in-fill and extension
assessment
of the orebody.
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About TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF)
TVI Pacific Inc. is a Canadian resource company focused on the
production, development, exploration and acquisition of
resource
projects in the Philippines and
Southeast Asia. The Company
produces
copper and zinc concentrates from its Canatuan mine and is
advancing
its Balabag Gold-Silver project towards production in 2014. TVI is
a
partner/operator in several joint venture projects in the Philippines
and Papua New Guinea and also has
an interest in an offshore Philippine
oil property.
The Balabag NI 43-101 technical report dated June 23, 2012, and entitled
"NI 43-101 Technical Report on the Balabag Gold Project,
Zamboanga
Province, Philippines" is
available on SEDAR at www.sedar.com and on TVI's website at
www.tvipacific.com. The technical report, which incorporates
results of drilling
completed to the end of June 2011,
provides estimates of an indicated
mineral resource of 1.78 million tonnes averaging 2.34 grams per
tonne
of gold and 72.3 grams per tonne of silver containing 134,262
ounces of
gold and 4,148,196 ounces of silver.
Yulo Perez, Chief Operations
Officer, TVIRD, a qualified person as
defined by NI 43-101, has approved the scientific and the
technical
information contained within this press release.
The Toronto Stock Exchange has neither approved nor disapproved
of the
information contained herein.
Cautionary Statement - Forward-Looking Information
This News Release contains forward-looking information within
the
meaning of applicable securities laws. Forward-looking statements
are
often, but not always, identified by the use of words such as
"seek",
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will",
"intend", "could", "might", "should", "believe" and similar
expressions. In particular, this News Release contains
forward-looking
information respecting: (i) the terms of the Facility and the LOC,
the
use of funds borrowed pursuant to the Facility and the security to
be
provided in relation to both the Facility and the LOC; and (ii)
the
anticipated timing of plant construction at Balabag and
establishment
of commercial production at Balabag.
Forward-looking statements are based upon the opinions and
expectations
of management of the Company, as at the effective date of such
statements and, in certain cases, information provided by third
parties. Although the Company believes that the expectations
reflected
in such forward-looking statements are based upon reasonable
assumptions, and that information obtained from third party sources
is
reliable, it can give no assurance that those expectations will
prove
to have been correct. Forward-looking statements are subject to
certain
risks and uncertainties that could cause actual events or outcomes
to
differ materially from those anticipated or implied by such
forward-looking statements. These factors include, but are
not limited
to, such things as the completion of satisfactory due diligence,
and
the occurrence of events that could have a material adverse effect
on
the business, operations, property or financial condition of
the
Company and its affiliates, including the volatility of prices
for
precious metals and base metals, commodity supply and demand,
fluctuations in currency and interest rates, inherent risks
associated
with the exploration and development of mining properties,
ultimate
recoverability of mineral reserves, timing, results and costs
of
exploration and development activities, the inability to obtain
required regulatory approvals (at all or on terms and
conditions
satisfactory to TVIRD) new laws (domestic or foreign) and changes
in
administrative practices. In relation to the Facility and the LOC
such
risk factors also included but are not limited to the Company's
ability
to successfully negotiate the definitive agreements relating to
the
Facility and LOC and the security to be granted to the Lender.
Accordingly, readers should not place undue reliance upon the
forward-looking statements contained in this News Release and
such
forward-looking statements should not be interpreted or regarded
as
guarantees of future outcomes.
Forward-looking information respecting the anticipated use of
proceeds
from the Facility and the timing of plant construction and
establishment of commercial production at Balabag are based
upon
various assumptions and factors, including the Company's
current
business strategy, budgets, mine plans and projects, all of which
are
subject to change, the current status of construction efforts
at
Balabag that all required regulatory approvals will be obtained
on
terms and conditions satisfactory to TVIRD and in a timely manner,
and
TVIRD's experience in bringing its Canatuan property into
production.
Forward-looking information respecting the timing of funding and
terms
and conditions upon which the Facility and LOC to be made available
are
based upon the Term Sheet and discussions with the Lender.
The forward-looking statements of the Company contained in this
News
Release are expressly qualified, in their entirety, by this
cautionary
statement. Various risks to which the Company is exposed in
the
conduct of its business are described in detail in the
Company's
management's discussion and analysis for the year ended
December 31,
2011 and the Company's amended Annual Information Form for
the year
ended December 31, 2011, which were
filed on SEDAR on March 20, 2012
and are available under the Company's profile at www.sedar.com.
Subject to applicable securities laws, the Company does not
undertake
any obligation to publicly revise the forward-looking
statements
included in this news release to reflect subsequent events or
circumstances. Accordingly, readers should not place
undue reliance
upon the forward-looking statements contained in this news release
and
such forward-looking statements should not be interpreted or
regarded
as guarantees of future outcomes.
SOURCE TVI Pacific Inc.