May 28, 2009
[TSX: TVI]
TVI PACIFIC COMPLETES
THIRD SHIPMENT OF COPPER CONCENTRATES FROM CANATUAN MINE
3rd shipment brings total expected gross
revenues to US$15.1 million
13,842 dmt of copper concentrates shipped
since March
TVI Pacific Inc (TSX: TVI or the Company)
announced today that its Philippine operating affiliate, TVI Resource
Development (Phils.), Inc. (TVIRD), completed its third shipment of copper
concentrates from the Canatuan Mine on May 27, 2009.
Certain statements in
this News Release constitute forward-looking statements, including statements
respecting expected revenues, the intended use of funds generated from the sale
of copper concentrates produced at Canatuan and the anticipated timing and
quantities of future shipments of copper concentrates from Canatuan.
In accordance with the offtake arrangement
between TVIRD and MRI Trading AG (MRI), a shipment of approximately 5,240 dry
metric tonnes (dmt) of copper concentrates was shipped from the TVIRD warehouse
facility at Santa Maria
Port in Siocon, Zamboanga
del Norte, destined for a major Chinese smelter. TVIRD is owed a partial
payment, amounting to approximately US$4.28 million, for the copper
concentrates shipped on May 27, 2009. Under the offtake agreement, final
payment for the remaining sale price of the concentrates is due once the final
details relating to the weight, assays and prices are determined. Funds
generated from the concentrate shipments are intended to be allocated by TVIRD
towards working capital and debt service.
The offtake agreement provides that MRI
will purchase all of the copper concentrates produced at Canatuan over the
anticipated life of the sulphide operation. To date, the Canatuan Mine
has produced approximately 14,500 dmt of copper concentrate. Of this
production, 13,842 dmt have been shipped through the offtake agreement with
MRI, expected to generate gross revenues of approximately US$15.1 million depending
on final assays and prices. Once the partial payment for this third shipment is
received from MRI, TVIRD will have received aggregate sales proceeds to date,
from the sulphide operation, of approximately $12.1 million.
It is anticipated that future shipments of
approximately 5,000 dmt to MRI will occur every four to six weeks thereafter,
depending on specific shipping and marketing arrangements.
The Company also confirmed that TVIRD
received a payment of US$573,395 (net of bank charges) on May 21, 2009, representing
the 10% amount outstanding from the first shipment of copper concentrates,
adjusted for final assays and prices. TVIRD completed the first
5,351-tonne shipment of concentrates on March 27, 2009, for which it previously
received a provisional payment equal to 90% of the estimated value of the
shipment, amounting to approximately US$4.9 million.
TVIRD and MRI have agreed to put
arrangements in place whereby MRI may in future make prepayments to TVIRD,
based on physical deliveries to the Santa
Maria Port
warehouse and legally binding Holding Certificates, prior to the subsequent
shipment of concentrate cargoes.
About TVI Pacific
Inc. (TSX: TVI)
TVI Pacific Inc. is a publicly traded
Canadian mining company focused on exploring for, developing and producing
precious and base metals within district-scale systems in the Philippines.
The Company’s interest in the Canatuan Mine and its other Philippine
assets are held through its affiliate, TVI Resource Development (Phils.)
Inc.
Further Information: Investor
Relations 403-265-4356 or tvi-info@tvipacific.com
The Toronto
Stock Exchange has neither approved nor disapproved of the information
contained herein.
2000, 736 ? 6 Avenue
S.W. Calgary, Alberta T2P 3T7 Tel: (403)
265-4356 Fax: (403) 264-7028
Website: http://www.tvipacific.com
E-mail: tvi-info@tvipacific.com