TVIRD announces closing of US$29.9 million term loan facility
TVI Resource Development (Phils.), Inc. (TVIRD) announced
today that it has closed a previously announced financing arrangement with LIM
Asia Multi-Strategy Fund Inc. and LIM Asia Special Situations Master Fund Limited
(collectively, the “Lenders”). The Lenders have confirmed to TVIRD
that outstanding conditions precedent under the January 20, 2009, Omnibus Loan
and Security Agreement (OLSA), entered into between TVIRD, the Lenders and others,
have been satisfied and that TVIRD is permitted to convert the bridge facility
previously provided by the Lenders into the term facility contemplated by the
OLSA and to draw additional funds under the term facility.
today that it has closed a previously announced financing arrangement with LIM
Asia Multi-Strategy Fund Inc. and LIM Asia Special Situations Master Fund Limited
(collectively, the “Lenders”). The Lenders have confirmed to TVIRD
that outstanding conditions precedent under the January 20, 2009, Omnibus Loan
and Security Agreement (OLSA), entered into between TVIRD, the Lenders and others,
have been satisfied and that TVIRD is permitted to convert the bridge facility
previously provided by the Lenders into the term facility contemplated by the
OLSA and to draw additional funds under the term facility.
The OLSA provides for a US$29,926,801 principal amount term
loan facility (the “Facility”). Subsequent to the signing of the
OLSA, an additional US$175,239 in accrued interest was added to the principal
amount as a result of a one-week extension in the completion of the conditions
precedent. This news release should be read in conjunction with the release
disseminated by the company on January 21, 2009, which can be accessed via this
link: http://www./article.php?id=216,
and the material change report and related documentation filed by the TVI Pacific
Inc, TVIRD’s Canadian affiliate, with various securities regulators in
Canada, copies of which are available under the Company’s profile on the SEDAR
website at www.SEDAR.com.
|
TVIRD’s
Sulphide mill facility in Canatuan, Siocon, Zamboanga del Norte. |
The purpose of the Facility is to convert the bridge loans
of approximately $27.1 million, including the additional interest accrued subsequent
to the signing of the OLSA, previously made to TVIRD by the Lenders into a term
loan and to provide TVIRD with additional investment capital to further advance
commissioning activities and to support mining and processing activities at
the Canatuan mine site, located on the Zamboanga Peninsula in southern Philippines.
On February 6, 2009, in connection with TVIRD’s fulfillment
of conditions precedent to lending under the OLSA, all outstanding amounts that
were payable to the Lenders under the previous bridge financing facility have
been converted into borrowings under the Facility.
The Term of the Facility is five years from the date of the
initial advance. After an initial 180-day period from the date of the initial
advance, the Company is required to begin repaying principal amounts outstanding.
In connection with the execution and delivery of the financing agreement, the
Company has issued to the Lenders share purchase warrants entitling them to
purchase up to 71,689,734 common shares in the capital of TVI at any time and
from time to time until January 20, 2014, at a purchase price of CDN$0.016 per
share.
