(TSX: TVI)
- 3rd shipment brings total expected gross revenues to US$15.1 million
- 13,842 dmt of copper concentrates shipped since March
CALGARY, May 28 /CNW/ - 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 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.
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", "to be", "will be" and similar expressions.
Forward-looking statements in this News Release are based upon the opinions
and expectations of management of the Company as at the date of such
statements. Although the Company believes that the expectations reflected in
such forward-looking statements are based upon reasonable assumptions, 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, changes in
exploration 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 intended use of
funds generated from the sale of copper concentrates produced at Canatuan is
based upon TVIRD's current budget and overall strategy for Canatuan, which
plans, budget and strategy are all subject to change and current and
anticipated financial obligations of TVIRD, including the terms and repayment
schedules associated with the term loan facility between TVIRD and LIM Asia
Multi-Strategy Fund Inc. and LIM Asia Special Situations Master Fund Ltd.
Forward-looking information respecting the anticipated timing and quantities
of future shipments of copper concentrates from Canatuan, is based upon
current production of copper from the Canatuan mine, the terms of the third
party offtake agreement for the purchase of copper concentrates produced at
Canatuan, the processing capabilities of the Canatuan mine, the availability
of transportation for the shipment of copper concentrates produced at
Canatuan, estimates of the size of the copper reserves at Canatuan, the
current development plan for Canatuan and TVIRD's current budget and overall
strategy for Canatuan, which plans, budget and strategy are all subject to
change. Forward looking statements regarding expected revenues are based on
the payments received to date for the first three concentrate shipments and
TVIRD'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 and
its affiliates are exposed in the conduct of their business (including mining
activities) are described in detail in the Company's Annual Information Form
for the year ended December 31, 2008, which was filed on SEDAR on March 26,
2009 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.
For further information: Investor Relations, (403) 265-4356 or
tvi-info@tvipacific.com