TVI Pacific Inc.
TSX : TVI

TVI Pacific Inc.

December 12, 2008 08:30 ET

TVI Pacific Signs Amendment Agreement to Increase Bridge Financing by US$5.2 Million

CALGARY, ALBERTA--(Marketwire - Dec. 12, 2008) - TVI Pacific Inc. (TSX:TVI) ("TVI" or the "Company") announced today that the Company and its Philippine affiliate, TVI Resource Development (Phils.) Inc. ("TVIRD"), have signed a Fourth Amendment Agreement to the Omnibus Loan and Security Agreement ("OLSA") originally signed with LIM Asia Arbitrage Fund Inc. (now LIM Asia Multi-Strategy Fund Inc.), LIM Asia Special Situations Master Fund Ltd. (collectively, the "Lenders") and others on March 11, 2008. Background information regarding the original bridge financing agreement is set out in news releases disseminated by the Company on March 13, October 14, and November 10, 2008, copies of which are available at www.tvipacific.com.

The Fourth Amendment Agreement provides that the total amount available under the Tranche B bridge financing facility has been increased by US$5.2 million to US$10.2 million, with the additional US$5.2 million to be made available in a series of scheduled drawdowns commencing on December 15, 2008 and ending on January 6, 2009. The original OLSA provided that funding up to US$5 million could be accommodated under the Tranche B facility. In aggregate, between the Tranche A and B facilities, the bridge financing that has been made available to TVIRD under the OLSA amounts to US$25.2 million.

The Fourth Amendment Agreement further provides that the maturity date for amounts borrowed under the OLSA and accrued interest is January 9, 2009 (extended from December 16, 2008) and that all accrued and unpaid interest as of the new maturity date (US$1.2MM), will be capitalized to form part of the loan principal. In addition, the Fourth Amendment Agreement stipulates that the obligation by the Lenders to provide undrawn Tranche B amounts will be null and void if the spot price of copper (on the London Metal Exchange / COMEX as of 9:00 am Hong Kong time) falls below US$0.90 per pound for three consecutive business days.

The principal purpose of the Tranche B facility is to provide TVIRD with working capital funding to further advance the commissioning and construction activities at the Canatuan mine site, located on the Zamboanga Peninsula in the Southern Philippines.

TVIRD advises that it is in discussions with the Lenders with regard to longer term financing for the Sulphide Project and other investments, involving, among other things, the possibility of conversion of the existing bridge facility (subject of this news release) into a term facility. There can be no assurance that these discussions will be successful and that additional financing or term financing will be available to the Company or TVIRD.

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. 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.

Contact Information

  • TVI Pacific Inc.
    Investor Relations
    (403) 265-4356
    or
    TVI Pacific Inc.
    2000, 736 - 6 Avenue S.W.
    Calgary, Alberta T2P 3T7
    (403) 265-4356
    (403) 264-7028 (FAX)
    Email: tvi-info@tvipacific.com
    Website: www.tvipacific.com