TORONTO (miningweekly.com) – Philippines-focused miner TVI Pacific has arranged a secured promissory note of up to C$1.3-million to joint venture (JV) partner Mindoro Resources, to help Mindoro fund its operations for the next year and to finance the first acquisition payment to secure the outstanding 25% interest in the Agata nickel project.

Mindoro currently held a 75% interest in the project and was negotiating an option to acquire the additional 25% from private Philippine exploration and mining services company and JV partner Minimax.

TVI and Mindoro Resources had signed four JV agreements relating to the Agata and Pan de Azucar projects, located on the Islands of Mindanao and Panay. The JVs presented TVI with multiple growth opportunities for near-term and medium-term cash flow generating potential.

Under the agreements TVI's Philippine subsidiary TVIRD had the opportunity to earn up to a 60% interest and would act as operator of both projects. The balance of the interest was held by Mindoro and Minimax, from whom Mindoro was negotiating acquiring the additional interest that would increase Mindoro's share to 40% in the Agata high-iron laterite direct shipping operation (DSO), the limestone DSO operation, and the Agata processing operation.

The Agata project was being progressed in two phases. The first phase was to undertake a feasibility study and permitting for a DSO project, leading - subject to economic viability - to the start of a DSO operation at the end of the year.

The second phase of project development entailed advancing the preferred processing technology to pilot testing, followed by a definitive feasibility study by the end of 2013. TVI early in June started pilot-plant testing, which would further define the technological parameters to be used in producing a bankable feasibility study.

Meanwhile, TVI last week said it had completed and submitted the declaration of mining project feasibility (DMPF) for the Balabag gold/silver project to the Environmental and Natural Resources Department (DENR) and the Mines and Geosciences Bureau (MGB) for review and approval.

The Balabag gold/silver project was located about 75 km east-northeast of TVI's flagship Canatuan copper/zinc mine, on Mindanao.

The DMPF represented an important milestone and followed the filing of the environmental compliance certificate (ECC). The Environmental Management Bureau (EMB) had previously reviewed and endorsed the ECC, which was now under final review by the MGB in preparation for official signatures from the DENR.

Both filings represented the final documents that needed to be approved to allow the company to start construction of the mine, mill and related facilities.

"The Balabag project is 'ready to go', as soon as these documents get the final approval of the government. We have the funding in place, and we have completed all the technical requirements needed for approval. Once the documents are signed, we will be in a position to accelerate development of the Balabag project to the benefit of all stakeholders,” TVI CEO Cliff James said.

TVI’s environmental impact statement submission for the project was given a positive recommendation by the EMB in the first quarter.

The company announced in March that it had secured low-interest financing to develop the project.