TSX-V: TVI OTC Pink: TVIPF
CALGARY, June 6, 2018 /CNW/ - TVI Pacific Inc. (TSX-V:
TVI) (OTC Pink: TVIPF) ("TVI" or "the Company")
is pleased to provide the following update with respect to its
various investments.
Financial Highlights
- $14.1 million fair value for
TVI's investment in Integrated Green Energy Solutions Ltd ("IGES")
as at the date of this information update, consisting of:
-
- $10.2 million fair value for
TVI's free trading shares; and,
- $3.9 million fair value for TVI's
options to purchase IGES shares as at the date of this information
update, after consideration of conversion price.
- The current value of TVI's free trading shares of IGES is
equivalent to $0.02 per share of
TVI's outstanding common shares.
- $1.5 million received to date in
regular quarterly and special dividends from TVI Resource
Development Phils., Inc. ("TVIRD"), after Philippine dividend tax,
consisting of:
-
- $0.2 million of quarterly
dividend income received to date in 2018; and,
- $1.3 million received through
2017.
Integrated Green Energy Solutions Ltd
As noted within the interim consolidated financial statements of
TVI for the period ended March 31,
2018, IFRS 9, "Financial Instruments" became effective on
January 1, 2018 and replaced previous
requirements included in IAS 39, "Financial Instruments -
Recognition and Measurement". This has had the effect at
March 31, 2018 of reporting TVI's
investment in IGES through application of fair value through profit
or loss. As such, TVI recognized a gain of $6.6 million for the period ended March 31, 2018, through initial recognition of
TVI's investment in IGES at fair value and a further $1.3 million from the revaluation of IGES options
held, contributing to a total net income of $6.9 million for the period ended March 31, 2018. TVI's investment in IGES
had previously been fully written-down at September 30, 2017, as a result of recognizing
TVI's proportionate share of IGES losses.
The fair value of TVI's investment in IGES at March 31, 2018 was calculated at the IGES share
price of A$0.38 ($0.37) as at that date. TVI's fair value
of its investment in IGES may be expected to fluctuate from time to
time based on the IGES share price as at the reporting date.
As at the date of this information update, the IGES share price is
A$0.61 ($0.60), suggesting a fair value for TVI's
investment in IGES of $10.2
million. The fair value of TVI's investment is
calculated on the remaining 16,822,908 IGES shares held by TVI
following the divestment of 770,000 IGES shares since the
January 30, 2018 relisting date of
IGES, at an average share price of A$0.47 ($0.46) to
generate net proceeds of approximately $348,250. As at the date of this
information update, TVI continues to hold a 4.94% equity interest
in IGES. TVI may continue to sell IGES shares, depending on
market conditions, but will do so in such a way not to negatively
influence the market – as it has done thus far.
In addition to IGES shares held, TVI continues to hold 9,158,621
options to purchase IGES shares with a conversion price of
A$0.20 and expiry date of
December 31, 2019. Options to
purchase IGES shares are also reported at fair value by TVI and for
the period ended March 31, 2018 had a
reported value of $2.0 million after
consideration of conversion price and as calculated through the
Black-Scholes model. As at the date of this information
update, the IGES share price is A$0.61 ($0.60),
suggesting the fair value for options to purchase IGES shares held
by TVI to be $3.9 million after
consideration of conversion price.
TVI Resource Development Phils., Inc.
On April 16, 2018, the TVIRD Board
of Directors declared a quarterly dividend of 30 million Philippine pesos ($0.7 million) to be issued among all shareholders
of record as of March 31, 2018.
As the direct shareholder of TVIRD, TVI International Marketing
Limited received as its share on April 23,
2018 a dividend of 9.2 million
Philippine pesos ($0.23
million), prior to Philippine dividend tax in the amount of
1.4 million Philippine pesos
($0.03 million), and the net amount
of 7.8 million Philippine pesos
($0.2 million) was then transferred
through to TVI as repayment of intercompany advances.
The dividend received in April
2018 follows the receipt of 56.8
million Philippine pesos ($1.5
million) in 1 special and 4 regular dividends from TVIRD
through 2017 prior to Philippine dividend tax withholding in the
amount of 8.5 million Philippine
pesos ($0.2
million).
TVI holds a 30.66% interest in its Philippine entity, TVIRD.
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on the
acquisition of resource projects in the Asia Pacific region. TVI currently holds
a 30.66% equity interest in TVIRD and a 4.94% equity interest in
Integrated Green Energy Solutions Ltd, a publicly listed company
incorporated in Australia with
shares listed on the Australian Stock Exchange ("ASX"), that is
engaged in the commercialization of technologies related to
converting waste plastics to fuel in Australia and internationally. TVI's
other holdings include a 14.4% equity interest in Mindoro Resources
Ltd.; a 10% interest in the Amazon Bay Iron Sands project in
Papua New Guinea; and a 100%
investment in shares of TG World. As at the date of this
information update, TVI has 655,537,049 outstanding common shares
and 698,987,039 fully diluted including the currently issued
outstanding options of 43,450,000.
About TVI Resource Development Phils., Inc.
TVIRD, the Philippine affiliate of TVI Pacific Inc., 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. It operates under
the highest standards of health and safety practices for its
workers and its host community; and is uncompromising in its
best-practices approach to environmental protection as well as
community development. TVIRD holds a 60% interest in Agata
Mining Ventures Inc. ("AMVI"), in which TVIRD is operator, a nickel
laterite Direct Shipping Ore ("DSO") operation that commenced in
October 2014 and has to date shipped
a total of 9.4 million wet metric tonnes through 173
shipments. TVIRD also owns 100% of the Balabag gold/silver
project.
About Integrated Green Energy Solutions Ltd
IGES is a publicly listed company incorporated in Australia with shares listed on the ASX and is
engaged in the commercialization of technologies related to
converting waste plastics to fuel in Australia and internationally. While
IGES has reported that it is in discussion with various parties in
multiple jurisdictions about the rollout of its technology, it has
commenced construction of a waste plastic to road ready fuel
facility in Amsterdam that is
expected to start producing road ready fuel in November 2018 and has recently also formed a
Joint Venture with Crown World Holdings Limited, a wholly owned
subsidiary of Beautiful China Holdings Company Limited, to
construct a waste plastics to fuel facility that is expected to be
completed and commissioned in the fourth quarter of 2019.
The ASX has advised that all shares and unlisted options held by
TVI are not subject to any ASX restrictions.
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 regarding IGES projects in
Amsterdam, China and elsewhere, as well as information
about IGES being in discussion with various parties in multiple
jurisdictions about the rollout of its technology, are based upon
announcements of IGES TVI does not have control over
IGES or, similarly, TVIRD, nor does it have any involvement in the
management or decisions of these entities or control over financial
reporting and internal controls of any of these entities.
Therefore, TVI relies on the internal controls and financial
reporting controls of these entities and their failure to maintain
effectiveness or comply with applicable standards may adversely
affect TVI.
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, 2017, which was filed on
SEDAR on April 19, 2018 and is
available under the Company's profile at
www.SEDAR.com. Readers are encouraged also to read this
press release in conjunction with the audited consolidated
financial statements that have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and
management's discussion and analysis for the years ended
December 31, 2017 and 2016, as filed
on SEDAR (www.sedar.com) on April 19,
2018, as well as the interim consolidated financial
statements for the periods ended March 31,
2018 and 2017, filed on SEDAR on May
17, 2018, both of which are also available on our web site
(www.tvipacific.com). The interim financial statements have
not been reviewed by the Company's auditor.
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.
SOURCE TVI Pacific Inc.