TVI Pacific Inc.
TSX : TVI

TVI Pacific Inc.

January 16, 2008 09:00 ET

TVI Pacific Announces Extension to Joint Venture Negotiations

CALGARY, ALBERTA--(Marketwire - Jan. 16, 2008) - TVI Pacific Inc. (TSX:TVI) ("TVI" or the "Company") announced today that its Philippine affiliate, TVI Resource Development (Phils.) Ltd. ("TVIRD"), and Atlas Consolidated Mining and Development Corp. ("ACMDC") have agreed to extend their negotiations respecting the establishment of a joint venture for the development of TVIRD's Canatuan sulphide project in the Philippines. The Company's interest in the Canatuan Mine and its other Philippine assets are held through TVIRD.

On December 27, 2007, the Company announced that TVIRD and ACMDC had signed a memorandum of agreement under which TVIRD had received an advance in the amount of 42 million Philippine pesos (approximately US$1 million) from ACMDC, which is secured by an accommodation pledge of 10% of the outstanding capital stock of TVIRD. In connection with the advance, TVIRD granted an option to ACMDC to enter into a joint venture with TVIRD to develop the Canatuan sulphide project. The option, which is scheduled to expire on January 31, 2008 (extended from the intial expiry date of January 15, 2008), is subject to any extensions mutually agreed upon by the parties in writing. Additional information concerning the advance from ACMDC is set out in the news release disseminated by the Company on December 27, 2007.

In addition to the negotiations with ACMDC, TVIRD is involved in discussions with other parties to secure the funding required to develop the Canatuan sulphide project and to reduce the Company's working capital deficiency. There can be no assurance that the joint venture contemplated by the memorandum of agreement with ACMDC will be successfully concluded or that the Company will be able to secure third party financing to develop the Canatuan sulphide project.

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 dore.

About ACMDC

Atlas Consolidated Mining & Development Corporation is a major mining corporation active in the Philippines. Atlas is listed on the Philippine Stock Exchange (PSE: AT) with a current market capitalization of approximately US$340 million and was, until May 1995, listed on the American Stock Exchange (AMEX). Among Atlas' significant mining assets in the Philippines are the Toledo Copper Mine in Cebu, where copper concentrates are expected to be exported from starting mid-2008, and the Berong Nickel Project in Palawan, which commenced exporting nickel ore to China in early 2007. Atlas also owns a portfolio of mineral interests throughout the Philippines, which include advanced and greenfield copper, gold and nickel targets.

The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • TVI Pacific Inc.
    Clifford M. James
    President and CEO
    (403) 265-4356
    (403) 264-7028 (FAX)
    or
    TVI Pacific Inc.
    Paul Moon
    Director, Corporate Communications
    (403) 265-4356
    (403) 264-7028 (FAX)
    Email: tvi-info@tvipacific.com
    Website: www.tvipacific.com