Cash flow in recent months allows firm to prepay comfortably
TVI Resource Development (Phils.) Inc. (TVIRD) has made a voluntary prepayment of US$3.1 million under the debt facility it entered into in early 2009, reducing the principal owing by 10% to US$27.0 million.
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A truck hauls ore from TVIRD’s Canatuan mine in Siocon, Zamboanga del Norte. Accelerating exploration and development activities at Canatuan and Balabag, Zamboanga del Sur as well as exploration projects at Tamarok, also in Zamboanga del Norte are key targets of the current TVIRD growth strategy.
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In addition to the principal prepayment amount of US$3.1 million, accrued interest, advisory fees and a premium for the right to make the prepayment brought the total cash payment made by TVIRD to US$6.0 million.
“Reducing the principal debt outstanding by 10% results in a meaningful net reduction in TVIRD’s debt service costs going forward,” said Cliff James, TVIRD CEO, said. “The cash flow generated by TVIRD in recent months has enabled it to make this prepayment comfortably. Reducing future interest costs and accelerating exploration and development activities at Canatuan and Balabag and exploration projects at Tamarok, are two key targets of the current TVIRD strategy for growth”.
