TVI Pacific Inc. ("TVI" or "the Company") and TVI's Philippine affiliate, TVI Resource Development (Phils.), Inc. ("TVIRD"), have announced that Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which TVIRD holds a 60% interest and is the operator, completed one shipment of high-iron/low nickel direct shipping ore ("DSO") for gross proceeds of US$615,000 in January 2015 from its Agata DSO operations located in northern Mindanao, the Philippines. This represents the sixth shipment completed by AMVI since operations commenced in October 2014.
Highlights
- A total of 49,234 wet metric tonnes of limonite high-iron/low nickel ore containing 0.88% nickel and 48.48% iron left the port of Payong-Payong in Agusan del Norte, Mindanao, on January 28, 2015, in accordance with an off-take arrangement between TVIRD and Tewoo Hoperay (Singapore) Pte. Ltd. ("Tewoo).
- AMVI expects to receive gross revenue of US$615,000 for the shipment (pending final assay and price adjustments).
- As at January 30, 2015, remaining inventory was approximately 33,507 wet metric tonnes of limonite high-iron/low nickel ore with nickel and iron content levels of 0.74% and 49.30%, respectively.
Production in January was hampered by extreme weather conditions that brought an extraordinary amount of rainfall to the operations area. As a result, AMVI completed one shipment of high-iron/low nickel limonite ore during the month instead of two shipments that were originally planned. Operations have returned to normal since the end of January and AMVI expects to complete two shipments in February consisting of one shipment of limonite ore and one shipment of higher grade nickel saprolite ore to secure higher selling prices.
"While the month of January was enormously challenging for the Agata DSO operation due to the severity of typhoon Mekkhala, I am pleased with how quickly the AMVI team was able to modify operational infrastructure to resume operations within the span of two weeks," stated Clifford James, Chairman and CEO of TVI Pacific Inc. and Chairman of TVIRD. "Everyone remains focused on maximizing operational efficiency at Agata to generate revenue and cash flows that will support TVIRD's valuation as it seeks a listing on the Philippines Stock Exchange later this year. This is critically important for TVI shareholders as it would substantially enhance our 30.66% investment and provide a ready source of funding for future projects."
About the Agata Project
The Agata project is held by AMVI, a joint venture company whose shares are owned by TVIRD and Mindoro Resources Ltd. ("Mindoro"), in which TVIRD holds a 60% interest and is operator. TVI has a 30.66% direct interest in TVIRD and thereby a 24.2% indirect ownership interest in AMVI through its ownership in TVIRD and its 14.4% direct interest in Mindoro.
The Agata Project is located in Agusan del Norte province, within the Surigao mining region on the island of Mindanao, Philippines. The Surigao region is a major lateritic nickel producing region providing ore to processing plants in Australia, China, Korea and Japan. The Agata Project is well located and is expected to benefit from its deep protected seaport, the opportunity for year-round shipping and its proximity to main markets in Asia.
An initial offtake agreement was signed by AMVI in June 2014 with Tewoo for the sale of one million wet metric tonnes of high-iron/low nickel limonite DSO, and a second agreement was signed in August 2014 to sell 500,000 wet metric tonnes. Advance payments of US$3 million have been received by AMVI against both agreements to fund initial operating costs. These advance payments are being offset on a per wet metric tonne basis over time.
As announced in news on November 26, 2014, AMVI plans to mine higher grade saprolite ore (containing greater than 1.5% nickel) found in the deeper part of the nickel laterite orebody and make two 55,000 wet metric tonne shipments of the ore in the first quarter of 2015 to secure higher selling prices. An offtake agreement for these two shipments was signed by AMVI with Tewoo Hoperay (Singapore) Pte. Ltd. ("Tewoo") on December 15, 2014.
Following the shipment of the higher nickel grade saprolite ore, AMVI plans to mine and make shipments consisting of both high and low grade ore in order to ensure that a blended higher selling price is obtained.
An NI 43-101 compliant mineral resource estimate released on April 10, 2013 shows the Agata DSO project to have reported Proven and Probable Reserves of 9.7 million wet metric tonnes with a grade of 48% Fe with 0.9% Ni. The report is available for viewing on http://www.sedar.com and www.tvipacific.com.
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. TVI's affiliate, TVIRD, has to date produced copper and zinc concentrates as well as gold and silver doré from its Canatuan mine and has now commenced shipping high-iron/low nickel ore at the Agata DSO project, which is 60% held by TVIRD. TVIRD is also in the final stages of completing a definitive feasibility study ("DFS") on the innovative Agata nickel processing project, in which TVIRD has the right to earn a 60% interest upon completion of the DFS, and continues to advance its 100% owned Balabag Gold-Silver project. TVI is a direct or indirect participant/operator in several joint venture projects in the Philippines, Papua New Guinea and Fiji and also has an interest in an offshore Philippine oil property.
In addition to retaining a 30.66% indirect interest in TVIRD and other Philippine subsidiaries, TVI continues to directly hold (i) 20.06% equity interest in Foyson Resources Limited ("Foyson") (ii) a 14.4% equity interest in Mindoro; (iii) its 10% interest in the Amazon Bay Iron Sands project (for which the exploration license is held by Titan Mines Limited, a company in which Foyson holds 50% shareholding and has an option to acquire the remaining 50%); and (iv) its 100% investment in shares of TG World Energy Corp.