Philippine's TVI Resources gets loan reprieve
21-NOV-2008 Intellasia | inquirer.net
Nov 21, 2008 - 7:00:00 AM
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TVI Resource Development (Philippines), operating in the southern province of Zamboanga del Norte, received a reprieve on payment of a US$20 million bridging loan as its copper and zinc production project in Canatuan town finally kicked off this week.
Its Canadian parent firm, TVI Pacific said the lenders—mainly LIM Asia Multi-Strategy Fund Inc. and LIM Asia Special Situations Master Fund Ltd— agreed to extend the loan's maturity by a month to December 16
TVI Resources has signed a third amendment agreement to a so-called omnibus loan and security agreement that covers both a US$15 million first tranche and a US$5 million second installment.
The new deal also provides that all accrued and unpaid interest on the loan as of the maturity date, which amounts to US$981,410, will be capitalised to form part of the loan principal.
TVI Resources said it was in talks with the lenders on longer-term financing for the Canatuan sulfide project and other investments, particularly on converting the bridging loan into a term loan.
Yulo Perez, vice president for operations, said the company started the commissioning process for the sulfide processing plant on November 15 after six months of preparations.
He said the company fed a total of 4,000 dry metric tonnes of ore to the crushing circuit the previous week, which he said was also the material that was fed to the ball mills that were commissioned last Saturday.
In its report for the nine months to September, TVI Pacific said it believed there was significant value in the Canatuan sulfide project as well as its gold exploration activities in Balabag, which borders the provinces of Zamboanga del Sur and Zamboanga Sibuyan.
"In the future, TVI intends to fund the Balabag and other exploration activities from cash flow generated from the Canatuan sulphide project, future debt financing, future equity offerings and potential sales of noncore assets," it said.
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