TVI Pacific's 30.66% owned TVIRD Closes US $14 million Short Term Loan for its Balabag Gold Mine
TVI Pacific's 30.66% owned TVIRD Closes US
$14 million Short Term Loan for its Balabag
Gold Mine
CALGARY, AB
,
Sept. 5, 2023
/CNW/ - TVI Pacific Inc. (TSXV: TVI) (OTC Pink: TVIPF) ("
TVI
" or
"
the Company
") is pleased to announce that TVI Resource Development Phils., Inc. ("
TVIRD
"), a
Philippines
corporation in which TVI holds a 30.66% interest, has closed a short term loan (
"STL"
)
with China Banking Corporation (the "
Lender
") in the amount of US
$14 million
(the "
Facility
"), the
proceeds of which shall be used for working capital purposes and further optimization of the
processing plant at TVIRD's 100%-owned Balabag gold/silver mine ("
Balabag
").
Balabag Financing Highlights
US
$14 million
Facility concluded with the Lender.
357-day term.
Interest to be paid monthly at a rate of 6.75% pa.
Balabag Financing
The Company initially announced on
October 22, 2019
, that TVIRD had closed an Omnibus Loan
and Surety Agreement (
"OLSA"
) with the Lender providing for a US
$28.5 million
principal amount
five-year term loan facility, the proceeds of which would be used to partially finance development of
Balabag. TVIRD has since that time, on
July 24, 2023
, completed its tenth repayment in relation to
the 5-year term loan, reducing the original principal loan balance to approximately US
$9.5 million
.
As further reported in the Company's Management's Discussion and Analysis for the six months
ended
June 30, 2023
and 2022, and as filed under the Company's profile on the SEDAR+ website at
www.sedarplus.ca
on
August 24, 2023
, Balabag has completed sixty-two (62) shipments of gold
doré since start-up of production in
July 2021
and through to
July 31, 2023
, that has contained
60,910 ounces of gold (
"Au"
) and 1,357,891 ounces of silver (
"Ag"
) for 76,428 AuEq ounces.
Balabag has completed a further five (5) shipments in
August 2023
.
The STL shall be used for working capital purposes and for further optimization of the Balabag
processing plant and has been fully drawn down on
September 1
, 2023. The STL has a term of 357
days and interest calculated on the full amount drawn is to be paid monthly. The interest rate has
been set at 6.75% per annum.
As with the OLSA, the STL shall be secured by:
a)
All agreements related to the Balabag gold/silver mine (
"Project Agreements"
), including but not limited to all exports and remittances related to Balabag, and the right, title and
interest to all such Project Agreements;
b)
Insurance contract rights.
About TVI Resource Development Phils., Inc.
TVIRD, a Philippine corporation in which TVI holds a 30.66% interest, is a diversified mining
company that focuses on the acquisition, exploration, development and production of resource
projects in the Philippines. TVIRD owns 100% of the Balabag gold/silver mine, 100% of the Siana
gold mine and Mapawa project, a 60% indirect interest in the Mabilo project, and a 60% interest in
Agata Mining Ventures Inc.
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on mining projects in
the Philippines
, one
of the most prolifically mineralized countries in the world. TVI currently holds a 30.66% equity
interest in TVIRD, a
Philippines
corporation. Through TVIRD, TVI has ownership in a currently
producing gold mine and is focused on bringing on-stream the Siana gold mine at which equipment
has been rehabilitated and commissioning of the plant has commenced in line with TVIRD's plan to
restart operations.
IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS
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 effective 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.
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 supplied by
third parties. Although the Company believes the expectations reflected in such forward-looking
statements are based upon reasonable assumptions and that information received from 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 and should not be read as guarantees of future performance or results.
These
factors include, but are not limited to, such things as: (i) general economic conditions in
Canada
,
the Philippines
and elsewhere; (ii) volatility of prices for precious metals, base metals, and other
commodities; (iii) commodity supply and demand; (iv) fluctuations in currency and interest rates;
(v) inherent risks associated with the exploration and development of mining properties, including
but not limited to geological characteristics, metallurgical characteristics of the mineralization, the
availability of equipment and facilities necessary to complete development and the ability to
develop adequate processing capacity; (vi) the cost of consumables and mining and processing
equipment; (vii) unforeseen technological and engineering problems; (viii) ultimate recoverability
of reserves; (ix) production, timing, results and costs of exploration and development activities; *
political factors, political stability or civil unrest, including but not limited to acts of sabotage or
terrorism; (xi) availability of financial resources or third-party financing; (xii) changes in laws or
regulations (domestic or foreign); (xiii) changes in administrative practices; (xiv) changes in
exploration plans or budgets; (xv) the availability of skilled labour; (xvi) the failure of parties to
contracts with the Company and TVIRD to perform as agreed, including its joint venture partners;
(xvii) the impact of the COVID-19 pandemic; and (xviii) extreme weather conditions and forces of
nature (i.e. typhoons, heavy rains, earthquakes, and the like) that may disrupt operations and
exploration.
Forward-looking statements regarding TVIRD's Balabag operations and further optimization of the
processing plant, are based upon, but are not limited to, TVIRD's past exploration, operations,
construction and project development experience in the region and in such terrain, current and
previous exploration activities, discussions with third parties, the availability of financing and
TVIRD's overall plans, budget and strategy for Balabag (which are all subject to change).
The Company wishes to clarify that in making the decision to put Balabag into production, TVIRD,
a Philippine corporation that the Company does not control, relied exclusively on technical and
economic analysis prepared under Philippine regulations and did not rely on any feasibility study
classifying mineral reserves prepared in accordance with NI 43-101. Historically such projects
have a much higher risk of economic and technical failure.
The Company does not have control over TVIRD nor does it have any involvement in the
management or decisions of TVIRD or control over financial reporting and internal controls of
TVIRD. The Company relies on the internal controls and financial reporting controls of TVIRD and
their failure to maintain effectiveness or comply with applicable standards may adversely affect
TVI.
Accordingly, readers should not place undue reliance upon the forward-looking statements
contained in this material change report and such forward-looking statements should not be
interpreted or regarded as guarantees of future outcomes.
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, 2022
, which was filed on SEDAR+ on
May 15, 2023
, and is available under the
Company's profile at
www.sedarplus.ca
.
The forward-looking statements contained in this News Release are made as of the date hereof
and the Company does not undertake any obligation to update or to revise any of the included
forward-looking statements, except as required by applicable securities laws in force in Canada.
The forward-looking statements contained herein are expressly qualified by this cautionary
statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
www.tvipacific.com
SOURCE
TVI Pacific Inc.
View original content:
http://www.newswire.ca/en/releases/archive/September2023/05/c3652.html
%SEDAR: 00001837E
For further information:
Patrick Hanna, Chief Financial Officer, TVI Pacific Inc., Phone: 403-265-
4356, E-mail: [email protected]
CO: TVI Pacific Inc.
CNW 08:48e 05-SEP-23