TSX: TVI OTCQX: TVIPF
CALGARY, Aug. 2, 2013 /CNW/ - TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF) (TVI or the Company) announced today that it has reached an agreement with Foyson Resources Limited (Foyson) to extend the period to complete the remaining Tranche 2 subscription agreement. TVI originally signed a Tranche 2 subscription agreement and associated joint venture agreements with Foyson on August 28, 2012. The amended Tranche 2 agreement is subject to approval by Foyson shareholders.
All amounts stated in this news release are in Australian Dollars unless otherwise stated.
Subject to funding, TVI will complete the remaining $900,000 placement under Tranche 2 at a price per share of $0.007, on terms consistent with those previously announced. The Tranche 2 placements have been rescheduled and will be made in two payments, the first for $315,000 within 10 days of further financing to be received by TVI, and the second for $585,000 within 10 days following the Foyson shareholder meeting to approve the transaction.
As part of the amended terms of agreement, Foyson will make an early repayment of 50% of the $600,000 unsecured convertible loan provided earlier by TVI, payable from the final Tranche 2 placement. The balance of the loan will continue to be subject to existing terms.
With respect to the Amazon Bay Project, TVI has agreed that Foyson will assume project management responsibility for the remainder of Stage 1.
"We are pleased to reach this agreement with Foyson." said Cliff James, Chairman and CEO of TVI Pacific Inc. "This agreement helps to preserve the company's total cash outflow and extends the period to complete the Tranche 2 funding, while providing TVI with exposure to Foyson's attractive portfolio of assets."
About TVI Pacific Inc.
TVI Pacific Inc. is a Canadian resource company focused on the production, development, exploration and acquisition of resource projects in the Philippines and Southeast Asia. The Company produces copper and zinc concentrates from its Canatuan mine and is advancing its Balabag Gold-Silver project. TVI is a participant/operator in several joint venture projects in the Philippines and Papua New Guinea and also has an interest in an offshore Philippine oil property.
The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
SOURCE TVI Pacific Inc.