SULPHIDE PROJECT UPDATE:
TVI PACIFIC - ATLAS JOINT VENTURE NEGOTIATIONS
DISCONTINUED; ALTERNATIVE SULPHIDE FINANCING DISCUSSIONS CONTINUE
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" or
"Atlas") have elected to discontinue negotiations in respect of
a proposed joint venture, which has been the subject of previous TVI news
releases. The companies have concluded that they wish to focus all
efforts on their respective core investments at Canatuan
(in the case of TVI) and the Toledo Copper Mine and Berong
Nickel Project (in the case of Atlas). However, the two companies have
agreed that they will continue to discuss possibilities for longer-term
project joint ventures in the future.
TVI
also reaffirmed that it and TVIRD continue to engage in
discussions with other parties to secure funding to develop the Canatuan sulphide project and to reduce the Company's
working capital deficiency. On January 21, 2008, TVIRD signed a
nonbinding term sheet with LIM Asia Arbitrage Fund Inc and LIM Asia
Special Situations Master Fund Limited relating to a US$15 million bridge
financing facility. Additional information concerning the term
sheet is set out in the news release disseminated by the Company on
January 21, 2008.
"TVI has been
working on parallel financing options, supplementary and/or alternative
to the possible Atlas arrangement," said TVI President and CEO,
Cliff James. "Management believes that the Canatuan
sulphide project is a compelling opportunity for both potential lenders
and offtakers. The project has been
approximately 50% constructed, using internally generated funds from the
current gossan operation, and we continue to
work diligently toward its completion."
There can be no
assurance that the bridge financing facility, contemplated by the term
sheet with LIM Asia Arbitrage Fund Inc. and LIM Asia Special Situations
Master Fund Limited, or other financing options which are being worked on
in parallel with the LIM bridging facility, will be successfully concluded
or that the Company will be able to secure third party financing to
develop 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�.
Further
Information: Clifford M. James, President and CEO, TVI
Pacific Inc.
Paul
Moon, Director, Corporate Communications (403) 265-4356
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
|