TSX: TVI OTCQX: TVIPF
TSXV: MIO ASX: MDO FFT: OLN
CALGARY,
April 28, 2014 /CNW/ - TVI Pacific
Inc. (TSX: TVI) (OTCQX: TVIPF) ("TVI"), Mindoro
Resources Ltd. (TSXV: MIO) (ASX: MDO) (FFT: OLM)
("Mindoro") and TVI's Philippine affiliate, TVI Resource
Development (Phils.), Inc. ("TVIRD") announced today that
the Agata Mining Joint Venture ("the AMJV") has received the
Declaration of Mining Project Feasibility ("DMPF") and
clearance to develop a port facility for the proposed direct
shipping ore ("DSO") operation of the high-iron laterite
resources at the Agata Project, located in Agusan del Norte,
Mindanao, the Philippines.
Receipt of the DMPF authorizes the AMJV to
proceed to development, including the extraction and sale of iron,
nickel and other associated minerals in the contract area. Site
development is expected to commence in May
2014 and shipping of the high-iron laterite would then
commence through the third quarter of 2014, subject to receipt of
remaining port approvals and financing.
The DMPF, granted by the Philippine Mines and
Geosciences Bureau of the Department of the Environment and Natural
Resources, also confirms that the AMJV has complied with
requirements of approval, which include, among other things:
- Provision of a Mining Project Feasibility Study Report;
- Receipt of an Environmental Compliance Certificate;
- Provision of a three (3) year Development and/or Utilization
Program;
- Provision of an Environmental Protection and Enhancement
Program, and Final Mine Rehabilitation and/or Decommissioning Plan;
and,
- Proof of technical competence and financial capability,
Clearance to develop a private non-commercial
port facility has also been received from the Philippine Ports
Authority. Construction of the port facility may commence upon
securing the permit to construct, the application for which has
commenced and will be followed also by an application for the
permit to operate.
On September 10,
2013, TVIRD and Mindoro completed a NI 43-101 compliant
Feasibility Study indicating robust economics for a DSO operation
of the high-iron laterite resources at the Agata Project. The
Feasibility Study concluded:
- Low initial start-up capital of US$10.1
million, high Internal Rate of Return of 187% and payback
within first year of operation;
- Post-tax Net Present Value (10% discount) of US$37.9 million;
- DSO product to grade 48% Fe and 0.9% Ni. - a product in
consistent demand;
- Shipping rates to accelerate to 2.5M wet metric tonnes per
annum in 2015.
The National Instrument 43-101 Compliant Mineral
Resource estimate for the Agata Nickel Project, released on
April 10, 2013 and available on
www.sedar.com, www.tvipacific.com, and www.mindoro.com, shows the
Agata DSO project to have reported Proven and Probable Reserves of
9.70 million wmt grading of 48% Fe with 0.9% Ni.
TVI Pacific Chairman, President & CEO,
Cliff M. James, said, "We are
pleased with this development that will allow TVIRD to move back
into production while working in parallel to further realize our
proposed nickel processing project for the benefit of our
shareholders and the community. We continue to successfully
achieve significant milestones that include the results of testing
at our pilot plants in both China
and the Philippines, and the
technical program remains on track to provide metallurgical data
required to design the proposed full-scale processing plant and to
finalize a bank feasibility study."
Mindoro CEO Tony
Climie commented, "This major milestone brings Mindoro to
the production stage. Exploration by Mindoro in the Philippines since 1997 has produced the
Agata Nickel Laterite resource, two NI43-101 compliant gold
resources, and multiple promising porphyry copper-gold prospects.
Mindoro is pleased with the progress made by the operator, TVIRD,
at Agata and with the support provided by major shareholder, Prime
Resources Holdings Inc., of the
Philippines."
TVIRD and Mindoro Joint Ventures
TVIRD and Mindoro have signed four joint venture
agreements, previously announced on October
1, 2012, relating to the Agata and Pan de Azucar mining
projects located in the
Philippines. The joint ventures present TVIRD and Mindoro
with multiple growth opportunities for near and medium-term cash
flow. TVIRD may earn up to a 60% interest in each of the joint
ventures and is operator of the projects.
As at March 31,
2014, TVIRD has incurred total expenditures of $6,410,715 and earned a 59% interest in the
shares of the Agata Mining Joint Venture and a 45% interest in the
shares of the Agata Processing Joint Venture, which remain in
escrow. TVIRD's interest in the Agata Mining Joint Venture
will be confirmed once the high-iron laterite DSO is brought into
operation, and TVIRD's interest in the Agata Processing Joint
Venture confirmed upon completion of the bank feasibility study for
the Nickel Processing Facility.
Mining opportunities at Agata include:
- near-term high-iron laterite DSO;
- near-term limestone DSO;
- medium-term lime production facility;
- medium-term nickel-processing plant.
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company
focused on the production, development, exploration and acquisition
of resource projects in the
Philippines and Southeast
Asia. TVI's affiliate, TVIRD, has to date produced
copper and zinc concentrates from its Canatuan mine and is
advancing its Balabag Gold-Silver project and its Agata Nickel DSO
operation.
TVI holds a 30.66% indirect interest in TVIRD
and the assets owned by TVIRD (including Canatuan, Balabag, the
Agata Mining and the Agata Processing Joint Ventures, the Pan de
Azucar Mining and Processing Joint Ventures, and various
exploration properties), a 15.51% equity interest in Foyson
Resources Limited ("Foyson"), a 14.4% equity interest in Mindoro
Resources Ltd., 100% of TG World Energy Corp., and a 10% interest
in the Amazon Bay Iron Sands project (for which the exploration
license is held by Titan Mines Limited, a company in which Foyson
holds 50% shareholding and has an option to acquire the remaining
50%).
About Mindoro Resources Ltd.
Mindoro is a Tier 1 Issuer trading on the TSX
Venture Exchange (MIO), Australian Securities Exchange (MDO) and
Frankfurt Stock Exchange (WKN 906167). Mindoro has a 16% interest
in the Agata Mining Joint Venture and 30% interest in the Agata
Processing Joint Venture, Mindanao, with an option to acquire an
additional 25% in both projects. Mindoro also holds 75% interest in
the Pan de Azucar Sulphur-Copper-Gold Project, Iloilo. TVIRD has
the option to earn up to a 60% interest in Agata and Pan de Azucar
projects by meeting the earn-in requirements outlined in the
June 24, 2013, press release, which
include funding the DSO operation into production and producing a
bankable feasibility study for a nickel processing facility.
Mindoro also holds 75% interest in the Tapian San Francisco
Copper-Gold Project, Mindanao.
The Toronto Stock Exchange has neither approved nor
disapproved of the information contained herein.
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.
IMPORTANT INFORMATION REGARDING
FORWARD-LOOKING STATEMENTS
Certain statements in this news release
constitute 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",
"schedule" and similar expressions. Forward-looking statements
include, but are not limited to, commencing development of the
infrastructure for the Agata North DSO Project plans to commence
direct shipping of high-iron limonite ore in the third quarter of
2014, and other statements that are not historical facts.
Forward-looking statements are based upon the opinions and
expectations of TVI and Mindoro as at the effective date of such
statements and, in certain cases, information received from or
disseminated by third parties. Although TVI and Mindoro believe
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. These
factors include, but are not limited to, such things as general
economic conditions in Canada,
the United States, the Philippines and elsewhere; volatility of
prices for precious metals, base metals, oil and gas; commodity
supply and demand; fluctuations in currency and interest rates;
inherent risks associated with the exploration and development of
mining properties; inherent risks associated with the exploration
of oil and gas properties; ultimate recoverability of reserves;
production, timing, results and costs of exploration and
development activities; political or civil unrest; 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 personnel and
equipment (including mechanical problems) and extreme weather
conditions and forces of nature (i.e. typhoons, heavy rains,
earthquakes, and the like) that may disrupt operations and
explorations.
The forward-looking statements set out in
this release include information relating to interests that may be
earned by TVIRD in the Agata and Pan de Azucar joint ventures;
opportunities for exploration, development and commercialization of
the Agata Mining Project (including the High Fe and Limestone
DSO/Lime Production Facility and the Agata Nickel Processing
Plant). Related risks and uncertainties include, but are not
limited to: (A) results of further work in pursuing the
conceptual planning described in this release not supporting
current expectations as to the opportunities outlined; (B) TVIRD
not funding the necessary expenditures at Agata or Pan de Azucar to
advance the projects or earn an interest under the joint venture
agreements due to, among other things (i) changes in TVIRD's
strategic priorities, due diligence findings, changes in laws or
regulations affecting mining operations in the Philippines (including the profitability
of such operations), and other factors, (ii) changes in TVIRD
budgets and (iii) limited availability of funds; (C) a
determination on the part of TVIRD not to pursue projects
contemplated by one or more of the joint venture agreements noted
above for technical, economic, legal or other reasons (including,
without limitation, a failure to obtain required permits or other
governmental or regulatory approvals); and (D) certain other
risks identified elsewhere in TVI's public filings, including,
without limitation, those risk factors set forth at pp. 66-74 of
TVI's Annual Information Form dated March 19, 2014.
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.
The forward-looking statements of TVI and
Mindoro contained in this news release are expressly qualified, in
their entirety, by this cautionary statement. Various risks to
which TVI, Mindoro and their affiliates are exposed in the conduct
of their business are described in detail in TVI's and Mindoro's
Annual Information Forms for the year ended December 31, 2013, which were filed on SEDAR on
March 19, 2014, and March 31, 2014, respectively, and are available
at www.SEDAR.com. Subject to applicable securities laws, TVI and
Mindoro do not undertake any obligation to publicly revise the
forward-looking statements included in this news release to reflect
subsequent events or circumstances, except as required by
law.
SOURCE TVI Pacific Inc.