SULPHIDE PROJECT
UPDATE:
TVI
PACIFIC GRANTED EXTENDED MATURITY DATE ON BRIDGE FINANCING
TVI Pacific Inc. (TSX: "TVI" or the "Company")
announced today that the Company's Philippine affiliate, TVI Resource
Development (Phils.) Inc. ("TVIRD"),
has signed a Letter Agreement extending the maturity date on the bridge
financing previously made available to TVIRD under the Omnibus Loan and
Security Agreement ("OLSA") originally signed with LIM Asia
Arbitrage Fund Inc. (now LIM Asia Multi-Strategy Fund Inc.), LIM Asia
Special Situations Master Fund Ltd. (collectively, the
"Lenders") and others on March 11, 2008. Background
information regarding the original bridge financing arrangement is set
out in the news releases disseminated by the Company on March 13, October
14, November 10, and December 12, 2008, copies of which are available at www.tvipacific.com.
The Letter Agreement provides that the maturity date for both
Tranche A and Tranche B of the US$25.2 million facility previously drawn
by TVIRD has been extended to January 30, 2009. The previous
maturity date of January 9, 2009 was set out in the Fourth Amendment
Agreement, which was signed on December 11, 2008, by the parties to the
OLSA. In addition, the Letter Agreement provides that all accrued
and unpaid interest on the Tranche A and B facilities as of the maturity
date, as amended, will be capitalized to form part of the loan principal.
As at January 12, 2009, the amount of interest to be capitalized stood at
US$1,649,506.22.
TVIRD advises that discussions are ongoing with the Lenders
concerning longer term financing for the Sulphide Project and other
investments, involving, inter alia, the possibility of conversion of the
bridge loan facility, subject of this news release, into a term
facility. There can be no assurance that these financing
discussions will be successful and that additional financing will be
available to the Company or TVIRD on terms acceptable to them.
About TVI Pacific Inc. (TSX: TVI)
TVI Pacific Inc. is a publicly traded Canadian mining company
focused on exploring for 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
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