|
SULPHIDE PROJECT UPDATE:
TVI PACIFIC ANNOUNCES JOINT VENTURE NEGOTIATIONS AND ASSOCIATED
FUNDING ADVANCE
TVI Pacific Inc.
(TSX: "TVI" or the "Company"), announced today that
its Philippine affiliate, TVI Resource Development (Phils.) Ltd.
("TVIRD"), and Atlas Consolidated Mining and Development Corp.
("ACMDC") have entered into negotiations respecting the
establishment of a joint venture for the development of TVIRD's Canatuan
sulphide project in the Philippines. The Company's interest in the
Canatuan Mine and its other Philippine assets are held through TVIRD.
Certain information
set out in this News Release constitutes forward-looking information,
including information relating to (i) the transition of the Canatuan mine
to production of copper and zinc from the underlying sulphide deposit,
(ii) timing expectations concerning the commencement of operation of the
proposed sulphide plant at Canatuan, (iii) anticipated capital costs and
working capital requirements for the sulphide project at Canatuan, (iv)
the timing of detailed engineering of the process plant at Canatuan, and
(v) the timing of construction of phase 1 of the tailings dam for the
sulphide project at Canatuan. Readers should review the cautionary
statement respecting forward-looking information that appears at the end
of this News Release.
TVIRD and ACMDC have
signed a memorandum of agreement under which TVIRD has received an
advance in the amount of 42 million Philippine pesos (approximately US$1
million) from ACMDC, which is secured by an accommodation pledge of 10%
of the outstanding capital stock of TVIRD. This pledge has been
granted by the Company's wholly-owned subsidiary TVI International
Marketing Ltd. In connection with the advance, TVIRD has granted an
option to ACMDC to enter into a joint venture with TVIRD to develop the
Canatuan sulphide project. The option, which expires on January 15,
2008, is subject to any extensions mutually agreed upon by the parties in
writing. Under the terms of the advance, no interest is payable by
TVIRD as long as the parties continue to negotiate the joint
venture. The memorandum of agreement with ACMDC provides that if
the parties enter into the joint venture, the advance will be settled in
accordance with the final joint venture agreement, however, if ACMDC
determines not to proceed with the joint venture, the advance will at
that time be treated as a loan and will be re-payable within six months,
together with interest at 15% per annum.
In addition to the
negotiations with ACMDC, TVIRD is involved in discussions with other
parties to secure the funding required to develop the Canatuan sulphide
project and to reduce the Company's working capital deficiency. There
can be no assurance that the joint venture contemplated by the memorandum
of agreement with ACMDC will be successfully concluded or that the
Company will be able to secure third party financing to develop the
Canatuan sulphide project.
About the Canatuan
Sulphide Project
The Canatuan mine
currently produces gold and silver dor� and, following the planned
construction of the sulphide plant, will transition into the production
of copper and zinc concentrates from a sulphide deposit underlying the
current open pit operation.
Assuming that project
financing is available in early 2008, TVI is targeting to have the
sulphide plant in operation in the second half of 2008.
TVI has financed the
initial development and construction of the sulphide project from cash
flow generated by the current gossan operations. As at December, 2007,
TVI expects that the remaining capital cost and working capital
requirements for the sulphide project will be approximately US$14.4
million. The estimated cost to complete the project reflects potential
cost savings assuming that portions of the current gossan producing plant
can be converted to the proposed sulphide processing plant. To
date, TVI has made considerable progress on the sulphide project,
including:
� All permits required for the project
are in place;
� Tax exemption has been approved by
the Philippine Board of Investment;
� Updating the computerized geologic
block model based on the 2006 drilling program, for which a new NI 43-101
report is underway to update mineral resources and reserves;
� Metallurgical test work for process
optimization almost complete;
� Detailed engineering of the process
plant due in Q1 2008;
� Purchased three used ball mills, two
of which have been refurbished, 1 in storage;
� Tailings dam construction underway,
phase 1 to be completed in Q1 2008 with 1 year capacity;
� Electrical power line under
construction;
� Additional administration office
building, warehouse and lab upgrade all completed; and
� Acid mine drainage study for waste
rock and dam is ongoing
In July 2006, TVI
filed an independent technical report on the sulphide project prepared by
Norwest Corporation in accordance with National Instrument 43-101.
TVI has engaged an
independent third party to update the NI 43-101 mineral resource estimate
for the Canatuan deposit. The report is expected to incorporate results
from an extensive drilling program consisting of 197 drill holes for a
total of 8,380
metres that was completed in late 2006, as well as
extensive metallurgical testing which is still ongoing. TVI has requested
the updated mineral resource and reserve models to, among other things,
facilitate detailed planning and operational optimization for the
Canatuan sulphide project.
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 and other Asian countries. The Company's interest in the
Canatuan Mine and its other Philippine assets are held through its
affiliate, TVI Resource Development (Phils.) Ltd. TVI's most
advanced project, the Canatuan Mine, currently produces gold and silver
dor�.
About ACMDC
Atlas Consolidated
Mining & Development Corporation is a major mining corporation active
in the Philippines. Atlas is listed on the Philippine Stock Exchange
(PSE: AT) with a current market capitalization of approximately US$340
million, and was, until May 1995, listed on the American Stock Exchange
(AMEX). Among Atlas' significant mining assets in the Philippines
are the Toledo Copper Mine in Cebu, where copper concentrates are
expected to be exported from starting mid-2008, and the Berong Nickel
Project in Palawan, which has commenced exporting nickel ore to China in
early 2007. Atlas also owns a portfolio of mineral interests throughout
the Philippines, which include advanced and greenfield copper, gold and
nickel targets.
Further Information: Clifford M. James, President and
CEO, TVI Pacific Inc.
Paul Moon, Director, Corporate Communications (403) 265-4356
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" 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 provided 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 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 (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 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, availability of financial
resources or third-party financing, new laws (domestic or foreign),
changes in administrative practices and changes in exploration plans or
budgets. 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 transition to production of copper and zinc
from the sulpide deposit at Canatuan is based upon TVI's current mining
plans for the Canatuan mine. Forward-looking information respecting
the anticipated timing and capital costs related to the startup of the
sulphide plant at Canatuan is based upon the status of negotiations
concerning financing of the sulphide project, that financing will be
available on terms acceptable to TVI Pacific, the status of TVIRD's
program to source equipment for the expansion of the Canatuan mine,
progress made to date in the construction of the sulphide plant at
Canatuan, management's experiences with the construction of the gossan
processing facility at Canatuan, and mining plans, capital budgets and
other projections prepared by the Company. As well, where
applicable, forward-looking information is based upon the Company's
current business strategy, budgets, mine plans and projects, all of which
are 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 are described in detail
in the Company's management's discussion and analysis for the year ended
December 31, 2006 and the Company's amended Annual Information Form for
the year ended December 31, 2006, which were filed on SEDAR on December
18, 2007 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.
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
|
|