Business
TVI Pacific signs US$29.9 million Term Loan Facility
(TSX: TVI) CALGARY, Jan. 20 /CNW/ - TVI Pacific Inc. (TSX: "TVI" or the "Company") announced toda...
About this update from Tvi Pacific Inc.
[{"type":"text","content":"\n\n\n\n(TSX: TVI)\n\n\nCALGARY, Jan. 20 /CNW/ - TVI Pacific Inc. (TSX: "TVI" or the "Company")\nannounced today that the Company and its Philippine affiliate, TVI Resource\nDevelopment (Phils.) Inc. ("TVIRD"), have signed an Omnibus Loan and Security\nAgreement ("OLSA") with LIM Asia Multi-Strategy Fund Inc. (formerly LIM Asia\nArbitrage Fund Inc.) and LIM Asia Special Situations Master Fund Limited\n(collectively, the "Lenders") providing for a US$29,926,801 principal amount\nTerm Loan Facility (the "Facility").\n\n\nThe purpose of the Facility is to convert to a term loan the bridge loans\npreviously made to TVIRD by the Lenders (in the aggregate amount of\napproximately US$25.2 million) and accrued interest and fees (in the aggregate\namount of approximately US$1,731,801); and to provide TVIRD with additional\nworking capital funding to further advance commissioning and construction\nactivities and to support mining and processing activities at the Canatuan\nmine site, located on the Zamboanga Peninsula in the southern Philippines.\n\n\n"We are pleased to conclude these financing discussions with the LIM\nGroup", stated Clifford M. James, President and CEO of TVI. "By converting the\nprevious bridge loan funds into a longer term facility, together with the new\nfunds provided by the facility, management of the Company believes that it now\nhas sufficient funds to establish commercial production from the Sulphide\nProject at Canatuan."\n\n\nThe OLSA provides that immediately on fulfilment of a number of\nconditions precedent, including the receipt of satisfactory due diligence\nreports of TVIRD and related companies, all outstanding amounts payable to the\nLenders under the previous bridge financing facility will be converted to an\ninitial advance under the Facility. Subsequent advances will be available for\na period of three months. Background information regarding the previous bridge\nfinancing facility is set out in news releases disseminated by the Company on\nMarch 13, October 14, November 10, and December 12, 2008, copies of which are\navailable at www.tvipacific.com.\n\n\nThe Term of the Facility is five years ending January 20, 2014. After an\ninitial 180 day period from the date of the initial advance, the Company is\nrequired to begin ...