CALGARY, March 4 /CNW/ - TVI Pacific Inc. (TSX: "TVI" or the "Company")
announced today that it has disposed of its Chinese exploration and drilling
operations through the sale of the outstanding shares of its subsidiary Tiamut
International Limited to an arms length third-party. TVI's Chinese exploration
and drilling operations were conducted indirectly through Hunan Pacific
Geological Exploration Inc. ("HPGEI"), a wholly owned subsidiary of Tiamut
International, incorporated under the laws of the People's Republic of China.
The sale price of the Tiamut International shares was US $1,980,000: US $
1,680,000 was paid to TVI Pacific at closing. Under the sale agreement
relating to the disposition transaction, the balance of the purchase price, US
$300,000, is to be held in escrow for a period of one year. The sale agreement
further provides that if no claims are made by the purchaser in respect of
agreement (for breach of representations and warranties, for example), the
holdback amount (and accrued interest) is to be paid to the Company. In the
sale agreement, TVI agreed that it will not compete with the business of
Tiamut International and Hunan Pacific Geological Exploration Inc. in the
People's Republic of China for a period of three years.
The principal assets of the Company's Chinese exploration and drilling
business consisted of six drilling rigs and associated drilling equipment and
the registration of HPGEI as a wholly-owned foreign enterprise under the laws
of the People's Republic of China. TVI Pacific continues to indirectly hold
and operate the drilling business conducted by EDCO, which owns sixteen drill
rigs in the Philippines and Kyrgyzstan.
The President of TVI Pacific Inc., Cliff James, noted: "We are very
pleased with the timely sale of these non-core assets. As part of the sale the
buyer has assumed various liabilities of HPGEI. The assumption of those
liabilities and the net proceeds from this sale have improved TVI's working
capital position. Late last year TVI made a decision to refocus all of its
efforts on its core assets in the Philippines. The Company believes the
Philippines continues to provide an attractive platform to facilitate growth
through blue sky exploration, near term development and production."
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 and other Asian countries. The Company's interest
in the Canatuan Mine and its other Philippine assets are held through its
affiliate, TVI Resource Development (Phils.) Ltd. TVI's most advanced project,
the Canatuan Mine, currently produces gold and silver doré.
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
For further information:
For further information: Clifford M. James, President and CEO; Paul
Moon, Director, Corporate Communications, (403) 265-4356