(TSX: TVI) - 3rd shipment brings total expected gross revenues to US$15.1 million - 13,842 dmt of copper concentrates shipped since March
CALGARY, May 28 /CNW/ - TVI Pacific Inc (TSX: "TVI" or the "Company") announced today that its Philippine operating affiliate, TVI Resource Development (Phils.), Inc. ("TVIRD"), completed its third shipment of copper concentrates from the Canatuan Mine on May 27, 2009.
Certain statements in this News Release constitute forward-looking statements, including statements respecting expected revenues, the intended use of funds generated from the sale of copper concentrates produced at Canatuan and the anticipated timing and quantities of future shipments of copper concentrates from Canatuan.
In accordance with the offtake arrangement between TVIRD and MRI Trading AG ("MRI"), a shipment of approximately 5,240 dry metric tonnes ("dmt") of copper concentrates was shipped from the TVIRD warehouse facility at Santa Maria Port in Siocon, Zamboanga del Norte, destined for for a major Chinese smelter. TVIRD is owed a partial payment, amounting to approximately US$4.28 million, for the copper concentrates shipped on May 27, 2009. Under the offtake agreement, final payment for the remaining sale price of the concentrates is due once the final details relating to the weight, assays and prices are determined. Funds generated from the concentrate shipments are intended to be allocated by TVIRD towards working capital and debt service.
The offtake agreement provides that MRI will purchase all of the copper concentrates produced at Canatuan over the anticipated life of the sulphide operation. To date, the Canatuan Mine has produced approximately 14,500 dmt of copper concentrate. Of this production, 13,842 dmt have been shipped through the offtake agreement with MRI, expected to generate gross revenues of approximately US$15.1 million, depending on final assays and prices. Once the partial payment for this third shipment is received from MRI, TVIRD will have received aggregate sales proceeds to date, from the sulphide operation, of approximately $12.1 million.
It is anticipated that future shipments of approximately 5,000 dmt to MRI will occur every four to six weeks thereafter, depending on specific shipping and marketing arrangements.
The Company also confirmed that TVIRD received a payment of US$573,395 (net of bank charges) on May 21, 2009, representing the 10% amount outstanding from the first shipment of copper concentrates, adjusted for final assays and prices. TVIRD completed the first 5,351-tonne shipment of concentrates on March 27, 2009, for which it previously received a provisional payment equal to 90% of the estimated value of the shipment, amounting to approximately US$4.9 million.
TVIRD and MRI have agreed to put arrangements in place whereby MRI may in future make prepayments to TVIRD, based on physical deliveries to the Santa Maria Port warehouse and legally binding Holding Certificates, prior to the subsequent shipment of concentrate cargoes.
About TVI Pacific Inc. (TSX: TVI) ---------------------------------
TVI Pacific Inc. is a publicly traded Canadian mining company focused on exploring for, developing and producing precious and base metals within district-scale systems in the Philippines. The Company's interest in the Canatuan Mine and its other Philippine assets are held through its affiliate, TVI Resource Development (Phils.) Inc.
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 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. These factors include, but are not limited to, such things as the volatility of prices for precious metals and base metals, commodity supply and demand, fluctuations in currency and interest rates, inherent risks associated with the exploration and development of mining properties, ultimate recoverability of mineral reserves, timing, results and costs of exploration and development activities, 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 equipment and availability of personnel. 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. Forward-looking information respecting the intended use of funds generated from the sale of copper concentrates produced at Canatuan is based upon TVIRD's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change and current and anticipated financial obligations of TVIRD, including the terms and repayment schedules associated with the term loan facility between TVIRD and LIM Asia Multi-Strategy Fund Inc. and LIM Asia Special Situations Master Fund Ltd. Forward-looking information respecting the anticipated timing and quantities of future shipments of copper concentrates from Canatuan, is based upon current production of copper from the Canatuan mine, the terms of the third party offtake agreement for the purchase of copper concentrates produced at Canatuan, the processing capabilities of the Canatuan mine, the availability of transportation for the shipment of copper concentrates produced at Canatuan, estimates of the size of the copper reserves at Canatuan, the current development plan for Canatuan and TVIRD's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change. Forward looking statements regarding expected revenues are based on the payments received to date for the first three concentrate shipments and TVIRD's current budget and overall strategy for Canatuan, which plans, budget and strategy are all subject to change. The forward-looking statements of the Company contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which the Company and its affiliates are exposed in the conduct of their business (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2008, which was filed on SEDAR on March 26, 2009 and is available under the Company's profile at www.SEDAR.com. 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.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.