JOHANNESBURG (miningweekly.com) – The Philippine affiliate of resource company TVI Pacific, TVI Resource Development (TVIRD), on Thursday announced that it was in negotiations to provide its joint venture partner in the Agata Mining Venture, Mindoro Resources, with C$2-million in convertible debenture financing.
The financing included a C$400 000 bridge loan with an interest rate of 8% a year. The loan’s principal and accrued interest would 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 bridge loan, which Mindoro would use to help finance its operations in the near term, would be secured by the shares of Mindoro’s wholly-owned subsidiary MRL Nickel Philippines.
The C$2-million proposed convertible debenture to be issued to TVIRD by Mindoro would have similar financial terms as that of the interim loan, except with a two-year term and a conversion feature of $0.05 in year one and $0.10 in year two in accordance with the rules of the TSX-V.
"We are very pleased at the progress being made on the Agata project in terms of the direct shipping ore operations, the exploration programmes that are under way at the nickel laterite and limestone deposits, and work on the Agata nickel processing project. TVIRD's negotiations with Mindoro to provide financial backing is testament to our continued confidence and support in our partner on the projects,” TVI CEO and TVIRD chairperson Cliff James commented.