CALGARY,
AB, Dec. 28, 2023 /CNW/ - TVI Pacific Inc.
(TSXV: TVI) (OTC Pink: TVIPF) ("TVI" or "the
Company") is pleased to announce that Greenstone Resources
Corporation ("GRC"), the owner and operator of the Siana
Gold mine ("Siana") and an entity wholly owned by TVI
Resource Development Phils., Inc. ("TVIRD"), a Philippines corporation in which TVI holds a
30.66% interest, has closed an Omnibus Loan and Surety Agreement
("OLSA") with China Banking Corporation (the
"Lender") providing for a US $30
million principal amount term loan facility (the
"Facility"), the proceeds of which shall be used to
partially finance its 3,000 metric tons per day ("MTPD")
Siana mine.
GRC Financing Highlights
- US $30 million Facility concluded
with China Banking Corporation.
- Five (5) year term with a fixed interest rate per annum
("pa") for the first two (2) years that shall be repriced on
the second anniversary from the initial drawdown date.
- Repayable in fifteen (15) equal quarterly installments to start
at the end of the sixth (6th) quarter from the initial
drawdown date. Interest is payable starting at the end of the
first quarter from the initial drawdown date.
GRC Financing
The Facility is a five (5) year term loan facility from the
Lender in the aggregate principal amount of up to US $30 million, the proceeds of which shall be used
to partially finance GRCs 3,000 MTPD Siana mine.
GRC has elected to apply a fixed interest rate for the first two
years of any amounts borrowed through the Facility that shall be
based on the sum of the benchmark rate plus a spread of 200 basis
points or 6.50% pa, whichever is higher, as established one Banking
Day prior to the relevant drawdown date ("Interest Rate Setting
Date"). A day after the second anniversary of the
initial drawdown date, a new repriced interest rate will be applied
based on the sum of the applicable benchmark rate plus a spread of
200 basis point or 6.50% pa, whichever is higher, as established
one Banking Day prior to the relevant anniversary from the initial
drawdown date. The new interest rate will be applicable for
the remaining tenor of the loan.
Benchmark rate is the simple average bid yield for the
Applicable Tenor of US dollar bonds issued by the Republic of
the Philippines as displayed on
the ALLQ Screen source-BGN (or successor screen) of Bloomberg (or
such successor electronic service provider) at approximately
5:00 pm GMT +8 for the three (3)
banking days ending on and inclusive of the Interest Rate Setting
Date.
The principal shall be repaid in fifteen (15) equal quarterly
installments to start at the end of the sixth (6th)
quarter from the initial drawdown date, with interest payable
quarterly in arrears starting at the end of the first quarter from
the initial drawdown date. An option exists to prepay the
Facility, in full or in part, subject to a prepayment
penalty.
The Facility shall be secured by:
a) A corporate surety provided by Prime Asset
Ventures, Inc.;
b) Fine Properties, Inc., a member of the Villar Group, acting
as Mortgagor;
c) A corporate surety provided by TVIRD and TVIRD acting as
Share Security Grantor whereby a first ranking security interest
over all of TVIRD's shares in GRC is provided;
d) First ranking security interest over, or assignment
of, GRC's rights/interests/receivables in its contracts with
buyers and all material contracts of Siana, excluding the Mineral
Production Sharing Agreement ("MPSA");
e) The Debt Service Reserve Account that shall hold at least the
amount equivalent to the next principal repayment and interest due
up to 90 days in advance of the due date; and,
f) Insurance contract rights related to Siana.
The Facility has been fully drawn on December 28, 2023.
"Conclusion of a loan facility with China Banking Corporation
will help Siana to move toward commercial production and to proudly
become the fifth mine for TVIRD following the Canatuan gold-silver
mine from 2004 to 2008, the Canatuan copper-zinc mine from 2009 to
2014, the Agata nickel direct shipping ore mine from 2014 to 2023
and in which TVIRD holds a 60% interest and the Balabag gold/silver
mine that commenced operations in 2021," stated Cliff James, Chairman and CEO of TVI and
Chairman of TVIRD. "This represents yet another exciting step
for both TVIRD and TVI Pacific as we continue to be focused on
adding value to TVIRD's portfolio of projects."
About GRC
On November 4, 2021, TVIRD
completed its acquisition of 100% of the outstanding equity in GRC,
the owner and operator of Siana and the Mapawa Project
("Mapawa"), both of which are located in the southern
Philippine island of Mindanao. Prior to the acquisition by
TVIRD, GRC was the Philippines
affiliate of Red 5 Limited ("Red 5") (ASX: RED), a
Perth, Western Australian-based
gold company, the shares of which are listed on the Australian
Securities Exchange. Red 5 previously reported in their 2020
Annual Report a combined historical Indicated JORC 2012 mineral
resource estimate for the Siana open pit and underground mine of
4.3Mt @ 4.6 g/t gold ("Au") and 6.8 g/t silver ("Ag")
and combined Inferred JORC 2012 mineral resource estimate for the
Siana open pit and underground mine of 0.5Mt @ 8.9 g/t Au and 10.6
g/t Ag. TVI is not treating this as a current mineral
resource under National Instrument 43-101 – Standards of Disclosure
for Mineral Projects as a qualified person has not done sufficient
work to classify the historical estimate as current and has not
verified this information; as such, these estimates should not be
relied upon.
Siana is located in Tubod, Surigao del Norte, approximately 35
kilometers from Surigao City and near to Lake Mainit, while Mapawa
is located 20 kilometers north of Siana and has the potential to be
developed as a satellite source of ore feed for the Siana
processing plant. The Siana mine covers a 3,289-hectare MPSA
(MPSA No. 184-2002-XIII) in addition to 100% of the neighboring
1,482-hectare MPSA No. 280-2009-XIII for the Mapawa Project and the
Ferrer Claim (as covered by the Application for Mineral Production
Sharing Agreement No. A000046 and comprising of one Block of 595
hectares). The Siana MPSA was granted on December 11, 2002 and registered with the
Philippine Mines and Geoscience Bureau on December 27, 2002 for a term of 25 years.
Siana is located along the Surigao Valley Fault, a major mineral
structure, which is a part of the major Philippine Fault or Rift
Zone. The Rift Zone constitutes multiple epithermal gold and
porphyry-type copper-gold mineral deposits.
GRC continues to focus on dewatering of the Siana pit and the
reconditioning and commissioning of the Process Plant. The
construction of Tailings Storage Facility 6 ("TSF-6") is now
complete with surfacing and maintenance of the embankment
ongoing. Permission of the TSF Engineer has been given to
start utilizing the facility for mill tails deposition and
soft-commissioning of the plant commenced in December 2022.
Through to November 30, 2023, a total
of 365,249 tonnes of low-grade stockpile mineralized material with
an average grade of 0.68 g/t Au and 4.37 g/t Ag has been milled,
averaging through the same period a plant utilization of 64% and an
average throughput of 1,900 MTPD to manage the drawdown of the
low-grade stockpile until the full development of the open pit is
achieved. A total of 699 kg of doré containing 6,401 oz of Au
and 15,377 oz of Ag have been smelted and a total of 674 kg of doré
containing 6,283 oz of Au and 14,968 oz of Ag have been shipped as
at November 30, 2023.
As the previous 100% owner of TVIRD, TVI's focus upon
responsible mining established the framework through which TVIRD
received and has continued to receive various environmental and
safety awards for its exceptional performance. This
discipline has carried through into GRC with GRC being awarded in
November 2023 the Platinum
Achievement Award in the Surface Mining Operation category and
runner-up for the Safest Surface Mining Operation Award by the
Presidential Mineral Industry Environment Award ("PMIEA")
Committee, both in relation to GRC's operations at Siana mine as it
continues to work through the soft-commissioning phase.
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 operating
Balabag gold/silver mine, 100% of the Siana gold mine that is
proceeding through the stage of soft-commissioning, 100% of the
Mapawa project (gold), a 60% indirect interest in the Mabilo
project (a copper-gold-iron skarn deposit that offers potential for
multi-metal products, namely copper, gold and silver, with
by-products magnetite and pyrite), and a 60% interest in Agata
Mining Ventures Inc. (nickel/iron DSO mine).
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 GRC's Siana development
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 Siana
(which are all subject to
change).
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.
SOURCE TVI Pacific Inc.
