TVI Pacific completes fourth shipment of copper concentrates from Canatuan Mineadmin
TVI Pacific Inc announced that its Philippine operating affiliate, TVI Resource Development (Phils.), Inc., completed its fourth shipment of copper concentrates from the Canatuan Mine on July 2, 2009.
Certain statements in this News Release constitute forward-looking statements, including statements respecting expected revenues, the intended use of funds generated from the sale of copper concentrates produced at Canatuan and the anticipated timing and quantities of future shipments of copper concentrates from Canatuan.
In accordance with the offtake arrangement between TVIRD and MRI Trading AG (“MRI”), a shipment of approximately 5,282 dry metric tonnes (“dmt”) of copper concentrates was shipped from the TVIRD warehouse facility at Santa Maria Port in Siocon, Zamboanga del Norte. TVIRD is owed a partial payment, amounting to approximately US$4.48 million or 90% of the initial estimated value of the cargo less applicable deductions, for the copper concentrates shipped. Under the offtake agreement, the final payment for the remaining sale price of the concentrates is due once the final details relating to the weight, assays and prices are determined. Funds generated from the concentrate shipments are intended to be allocated by TVIRD towards working capital and debt service.
The offtake agreement provides that MRI will purchase all of the copper concentrates produced at Canatuan over the anticipated life of the sulphide operation. To date, the Canatuan Mine has produced approximately 20,200 dmt of copper concentrate. Of this production, 19,124 dmt have been shipped through the offtake agreement with MRI, generating estimated gross revenues of approximately $21 million pending final assay tests and prices.
It is anticipated that future shipments of approximately 5,000 dmt to MRI will occur every four to six weeks depending on specific shipping and marketing arrangements.