TVI's Philippine Affiliate Arranges CDN$500,000 Bridge Loan To Mindoro Resources

TSX: TVI   OTCQX: TVIPF

CALGARY, Dec. 17, 2014 /CNW/ - TVI Pacific Inc.

Further to news announced on November 27, 2014, the amount of the bridge loan under negotiation between TVIRD and Mindoro was increased from CDN$400,000 to CDN$500,000 and subsequently approved by the boards of both companies.  The key terms of the bridge loan are as follows:

• 8% per annum interest rate;
• Principal and accrued interest will be due on the earlier of January 31, 2015 or upon receipt of the proceeds from a proposed $2 million convertible debenture issue to TVIRD;
• The loan will be secured by the shares of Mindoro's Philippine subsidiary, MRL Nickel Phils., Inc.;
• Proceeds of the loan will be used by Mindoro to fund outstanding obligations to Minimax Mineral Exploration Corporation, for the acquisition of Minimax's 25% interest in the Agata project, and for outstanding obligations to Mindoro's former CEO, Tony Climie, as well as for general working capital; and
• Upon maturity of the loan, Mindoro will reimburse TVIRD's legal expenses up to a maximum of $30,000.

Mindoro has also undertaken negotiations to issue a CDN$2 million convertible debenture to TVIRD on similar financial terms as the interim loan, except with a two-year term and a conversion feature of $0.05 in Year 1 and $0.10 in Year 2 in accordance with the rules of the TSX Venture Exchange.  In the event that these negotiations are successfully completed and all regulatory and board approvals are obtained, the final terms of the financing and expected use of proceeds will be disclosed in a press release.

AMVI is a joint venture company whose shares are owned by TVIRD and 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, which holds a 15% interest and option to acquire a further 25% in AMVI.  If the convertible debenture is to be converted at a conversion price of $0.05 in Year 1, TVIRD would gain a direct interest of 11.9% in Mindoro and a further 4.7% indirect interest in AMVI through its investment in Mindoro, while the combined direct and indirect interest held by TVI in Mindoro would increase to 16.3% from the current direct interest of 14.4% and TVI's indirect ownership interest in AMVI would increase to 24.9%.

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) 20.04% 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.   

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

Certain information set out in this News Release constitutes forward-looking information.  Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "scheduled", "to be", "will be" and similar expressions.  Forward-looking statements in this News Release are based upon the opinions and expectations of management of the Company as at the effective date of such statements.  Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will prove to have been correct.  Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied by such forward-looking statements.  These factors include, but are not limited to, such things as inherent risks associated with the exploration and development of mining properties, ultimate recoverability of mineral reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, new laws (domestic or foreign), changes in administrative practices, changes in exploration plans or budgets, and availability of equipment and personnel. 

Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes.  The forward-looking statements of the Company contained in this News Release are expressly qualified, in their entirety, by this cautionary statement.  Various risks to which the Company is exposed in the conduct of its business (including mining activities) are described in detail in the Company's Annual Information Form for the year ended December 31, 2013, which was filed on SEDAR on March 19, 2014 and is available under the Company's profile at www.SEDAR.com.  Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this News Release to reflect subsequent events or circumstances.

SOURCE TVI Pacific Inc.