- Reduce debt facility expenses
- Increase cash flow for growth plans
CALGARY, Sept. 24 /CNW/ - TVI Pacific Inc ("TSX:TVI" or "the Company") announced today that its Philippine affiliate, TVI Resource Development (Phils.), Inc. ("TVIRD"), has retained Manila-based Argosy Partners Inc. ("Argosy") to assist TVIRD in its efforts to refinance the debt facility it entered into in January 2009. Argosy is an established private investment and advisory firm focused on raising and investing capital in operating companies.
The existing debt facility was negotiated and implemented in late 2008 and early 2009 when access to capital was severely limited and tight credit markets resulted in elevated financing costs. The engagement agreement with Argosy provides that Argosy will work with TVIRD to identify alternative sources of financing to restructure the facility.
Although TVIRD's strong cash flow is more than sufficient to service the current interest, advisory fee and principal payment schedule, management believes that securing lower-cost alternatives to the current facility would better enable TVIRD to accelerate growth plans which are expected to add value for shareholders.
"By increasing cash flow through a reduction in interest expense, we will have access to additional financial resources to execute another portion of our growth plan", said Clifford James, President and Chief Executive Officer of TVI Pacific. "We have accelerated budgeted capital expenditures for the Sulphide Project's Zinc Circuit and Power Line components by six months, with construction expected to commence in Q4 this year. We have also fast-tracked defining expansion opportunities at Canatuan, and are working diligently on accelerating our Balabag gold project development as well as advancing exploration at Tamarok."
There can be no assurance that TVIRD's efforts to refinance the existing debt facility will be successful or that additional financing will be available to TVIRD on terms acceptable to it.
Certain statements in this News Release constitute forward-looking statements, including statements respecting the anticipated timing for start-up of construction of the zinc circuit at the Canatuan project and construction of a new power line to service the Canatuan mine. Readers should refer to the cautionary statement respecting forward-looking information that appears at the end of this News Release.
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 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 concerning the anticipated timing for start-up of construction of the zinc circuit at the Canatuan project and construction of a new power line to service the Canatuan mine, is based upon TVIRD's current working capital position, estimated cash flow from the Canatuan mine being consistent with cash flow generated in recent months, the schedule of shipments of copper concentrates produced at the Canatuan mine being consistent with the shipping schedules for recent months, management's estimates of the costs associated with the construction projects and 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. 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.
SOURCE TVI Pacific Inc.
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