CALGARY, Sept. 28 /CNW/ - TVI Pacific Inc. ("TVI" or "the Company") announced today that its Philippine affiliate, TVI Resource Development (Phils.) Inc. ("TVIRD"), has made a voluntary prepayment of US$3.1 million under the debt facility it entered into in early 2009, reducing the principal owing by 10% to US$27.0 million.
In addition to the principal prepayment amount of US$3.1 million, accrued interest, advisory fees and a premium for the right to make the prepayment, brought the total cash payment made by TVIRD to US$6.0 million.
"Reducing the principal debt outstanding by 10% results in a meaningful net reduction in TVIRD's debt service costs going forward," said Cliff James, TVI's President and CEO. "The cash flow generated by TVIRD in recent months has enabled it to make this prepayment comfortably. Reducing future interest costs and accelerating exploration and development activities at Canatuan and Balabag and exploration projects at Tamarok, are two key targets of the current TVIRD strategy for growth".
This news release should be read in conjunction with the Omnibus Loan and Security Agreement entered into by TVIRD, the Company and others in January 2009, a copy of which has been filed with certain securities regulatory authorities in Canada and is available under the Corporation's profile at www.sedar.com.
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.
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.
SOURCE TVI Pacific Inc.
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