SULPHIDE PROJECT UPDATE:
TVI PACIFIC SECURES ADDITIONAL BRIDGE FINANCING TO CONTINUE CONSTRUCTION OF SULPHIDE PLANT AT CANATUAN
- LIM Asia Special Situations Master Fund Ltd. provides additional US$2 million under Tranche B facility
- Sulphide Project scheduled to begin copper concentrate production in mid-November
TVI Pacific Inc. (TSX: "TVI" or the "Company") announced today that LIM Asia Special Situations Master Fund Ltd. (the "Fund") has provided $2 million in additional bridge loan funds to the Company's Philippine affiliate, TVI Resource Development (Phils.) Inc. ("TVIRD"), to permit continued construction of the Company's Sulphide Project through to the start-up of copper concentrate production, which is scheduled for mid-November, 2008.
An Amendment Agreement (the "Amendment Agreement") to the Omnibus Loan and Security Agreement, originally signed with LIM Asia Arbitrage Fund Inc. (now LIM Asia Multi-Strategy Fund Inc.) and LIM Asia Special Situations Master Fund Ltd. (the "Lenders") on March 11, 2008 (the "Loan Agreement"), provided for up to an additional US$5 million in bridge financing ("Tranche B"), of which US$3 million was transferred on October 15, 2008. The remaining US$2 million was made available by the LIM Asia Special Situations Master Fund Ltd. on November 7, 2008, as the Fund elected to take up the full $5 million of the Tranche B loan. This news release should be read in conjunction with TVI's news releases on October 14 and 16, 2008, which are available at www.tvipacific.com.
Certain statements in this News Release constitute forward-looking statements, including the anticipated timing of commencement of mining and processing activities at the Canatuan Sulphide Project. Readers should refer to the cautionary statement that appears at the end of this News Release.
"We are grateful to the LIM Group for their continued support and confidence in TVI", said Cliff James, President and Chief Executive Officer of the Company. "The Company continues to be in a position to implement the Sulphide Project at the Canatuan mine, with a view to becoming a base metals producer."
TVIRD is continuing discussions with financial institutions with regard to the additional working capital financing that will be required to operate the Canatuan facility following start-up; as well as longer term financing for the Sulphide Project and other investments. 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 acceptable terms.
Additional Information
The principal purpose of the Tranche B facility was to provide TVIRD with working capital funding to further advance the construction of its Sulphide Project at the Canatuan mine site, located on the Zamboanga Peninsula in the Southern Philippines.
As contemplated by the Amendment Agreement, the Company has guaranteed the obligations of TVIRD under the Amendment Agreement; and TVI Limited, a wholly-owned subsidiary of the Company, has granted a security interest to the Lenders that covers the outstanding shares of TVI International Marketing Limited, through which the Company holds its interest in TVIRD. In addition, TVIRD has granted to the Lenders a security interest covering substantially all of its assets.
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
Certain information set out in this News Release constitutes forward-looking information. 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", "scheduled" and similar expressions. 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 received from or disseminated by third parties. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions and that information received from or disseminated by third parties 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 (known and unknown) that could cause actual 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 occurrence of events that could have a material adverse effect on the business, operations, property or financial condition of the Company and its affiliates; the volatility of prices for precious metals and base metals; commodity supply and demand; fluctuations in currency and interest rates; inherent risks associated with construction activities and the development of mining properties; ultimate recoverability of mineral reserves; timing, results and costs of construction and development activities; availability of financial resources or third-party financing; new laws (domestic or foreign); changes in administrative practices; changes in plans or budgets; and availability of equipment and availability of personnel. 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 timing of further drawdowns under the credit facility made available by the Lenders and commencement of mining and processing activities at the Canatuan Sulphide Project is based upon progress made to date on the construction of the Infrastructure required to support mining and processing activities from the Sulphide zone at Canatuan, costs incurred to date in connection with the construction project, advice received from third-party contractors with respect to the timing of various components of the construction project, prior experiences of management with construction activities at Canatuan, the current development plan for Canatuan and the Company's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change. 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 (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2007, which was filed on SEDAR on March 27, 2008 and is 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.
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