TVI Pacific Inc.'s Philippine Affiliate Provides Update on Net Smelter Return Proceeds from Rapu Rapu Group

Feb 08, 2013, 07:00 ET from TVI Pacific Inc.


CALGARY, Feb. 8, 2013 /CNW/ - TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF) TVI Pacific Inc. (TVI or the Company) and TVI Resource Development (Phils.), Inc. (TVIRD) are pleased to provide an update on net smelter return ("NSR") proceeds from Korea Malaysia Philippines (KMP) Resources, Inc., [formerly "Lafayette (Philippines), Inc."], Rapu Rapu Minerals, Inc. and Rapu Rapu Processing, Inc. ("Rapu Rapu Group").

  • TVIRD has received net US$858,592 representing the second installment of the settlement agreement for the period 2005 through to Q3 2012 on January 31, 2013

  • Rapu Rapu Group has agreed to remit net US$770,172 representing payment for Q4 2012 in April 2013

  • Total proceeds paid and future payments expected will total gross US$4,807,435 for the periods 2005 through to Q4 2012

  • Settlement agreement provides for an undertaking for both parties to negotiate a lump sum settlement for all future NSR proceeds, which would be over and above the total gross proceeds of US$4,807,435

TVIRD received net US$858,592 from Rapu Rapu Group representing the second installment of four to be received as part of the settlement agreement between TVIRD and Rapu Rapu Group on January 31, 2013. Rapu Rapu Group has also agreed to pay net US$770,172 for NSR covering Q4, 2012.   Payments received to date and expected in the future are, as follows:

            Rapu Rapu Payment ($US)
Date     Settlement Period     Gross     Net
Dec.31.2012     2005 through Q3 2012           $   625,000           $   500,000
Jan.31.2013     2005 through Q3 2012           1,073,240           858,592
Feb.28.2013     2005 through Q3 2012           1,073,240           858,592
Mar.31.2013     2005 through Q3 2012           1,073,240           858,592
Apr.30.2013     Q4 2012           962,715           770,172
to be negotiated     Future Lump Sum NSR     to be further negotiated     to be further negotiated

Total NSR Proceeds Agreed to Date
     $4,807,435           $3,845,948

The settlement agreed to with the Rapu Rapu Group provides opportunity to negotiate a lump sum settlement for all future NSR proceeds that will result from future operations which, if agreed to by TVI, would be in addition to the total US$4,807,435 gross NSR proceeds recognized as due to TVI by Rapu Rapu for the period ending December 31, 2012.

About TVI Pacific Inc. (TSX: TVI) (OTCQX: TVIPF)

TVI Pacific Inc. is a publicly-traded Canadian company that is focused on the production, development, exploration and acquisition of resource projects in the Philippines and Southeast Asia. TVI produces copper and zinc concentrates from its Canatuan mine.  TVI also is a partner in several joint venture projects in the Philippines and Papua New Guinea and 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.