TVI Pacific Inc. (TVIPF: OTCQX International) | 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:

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.

Article source: http://www.otcmarkets.com/stock/TVIPF/news?id=59887

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