TVI Pacific Inc.

TVI Pacific Inc.

March 04, 2008 08:30 ET

TVI Pacific Inc. Announces Disposition of Chinese Operations

CALGARY, ALBERYA--(Marketwire - March 4, 2008) - TVI Pacific Inc. (TSX:TVI) ("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 dore.

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)
    TVI Pacific Inc.
    Paul Moon
    Director, Corporate Communications
    (403) 265-4356
    (403) 264-7028 (FAX)