CALGARY, Feb. 9 /CNW/ - TVI Pacific Inc. (TSX: "TVI" or the "Company")
announced today that its Philippine affiliate, TVI Resource Development
(Phils.), Inc. ("TVIRD"), has closed a previously announced financing
arrangement with LIM Asia Multi-Strategy Fund Inc. and LIM Asia Special
Situations Master Fund Limited (collectively, the "Lenders"). The Lenders
have confirmed to TVIRD that outstanding conditions precedent under the
January 20, 2009, Omnibus Loan and Security Agreement ("OLSA"), entered into
between the Company, TVIRD, the Lenders and others, have been satisfied and
that TVIRD is permitted to convert the bridge facility previously provided by
the Lenders into the term facility contemplated by the OLSA and to draw
additional funds under the term facility. The OLSA provides for a
US$29,926,801 principal amount term loan facility (the "Facility"). Subsequent
to the signing of the OLSA, an additional US$175,239 in accrued interest was
added to the principal amount as a result of a one week extension in the
completion of the conditions precedent. This news release should be read in
conjunction with the release disseminated by the Company on January 20, 2009,
a copy of which is available at www.tvipacific.com, and the material change
report and related documentation filed by the Company with various securities
regulators in Canada, copies of which are available under the Company's
profile on the SEDAR website at www.SEDAR.com.
The purpose of the Facility is to convert the bridge loans of
approximately $27.1 million, including the additional interest accrued
subsequent to the signing of the OLSA, previously made to TVIRD by the Lenders
into a term loan and to provide TVIRD with additional investment capital to
further advance commissioning activities and to support mining and processing
activities at the Canatuan mine site, located on the Zamboanga Peninsula in
the southern Philippines.
On February 6, 2009, in connection with TVIRD's fulfillment of conditions
precedent to lending under the OLSA, all outstanding amounts that were payable
to the Lenders under the previous bridge financing facility have been
converted into borrowings under the Facility.
The Term of the Facility is five years from the date of the initial
advance. After an initial 180 day period from the date of the initial
advance, the Company is required to begin repaying principal amounts
outstanding. In connection with the execution and delivery of the financing
agreement, the Company has issued to the Lenders share purchase warrants
entitling them to purchase up to 71,689,734 common shares in the capital of
TVI at any time and from time to time until January 20, 2014, at a purchase
price of CDN$0.016 per share.
About TVI Pacific Inc. (TSX: TVI)
TVI Pacific Inc. is a publicly traded Canadian mining company focused on
exploring for 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.
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
For further information:
For further information: Investor Relations, (403) 265-4356 or