TVIRD completes third shipment of copper concentrates from Canatuan Mine
In accordance with the offtake arrangement between TVIRD and MRI Trading AG (MRI), a shipment of approximately 5,240 dry metric tonnes (dmt) of copper concentrates was shipped from the TVIRD warehouse facility at Sta. Maria Port in Siocon, Zamboanga del Norte, destined for a major Chinese smelter. TVIRD is owed a partial payment, amounting to approximately US$4.28 million, for the copper concentrates shipped on May 27, 2009. Under the offtake agreement, 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.
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Top photo shows a bulldozer transferring copper concentrates to a dump truck. TVIRD personnel are shown in middle photo taking concentrate samples for assay laboratory testing. In bottom photo, a backhoe maximizes the concentrate storage area in the barge, which, once full, goes to and docks with a waiting ship to unload the cargo.
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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 14,500 dmt of copper concentrate. Of this production, 13,842 dmt have been shipped through the offtake agreement with MRI, expected to generate gross revenues of approximately US$15.1 million depending on final assays and prices. Once the partial payment for this third shipment is received from MRI, TVIRD will have received aggregate sales proceeds to date, from the sulphide operation, of approximately $12.1 million.
It is anticipated that future shipments of approximately 5,000 dmt to MRI will occur every four to six weeks thereafter, depending on specific shipping and marketing arrangements.
TVIRD also confirmed that it received a payment of US$573,395 (net of bank charges) on May 21, 2009, representing the 10% amount outstanding from the first shipment of copper concentrates, adjusted for final assays and prices. TVIRD completed the first 5,351-tonne shipment of concentrates on March 27, 2009, for which it previously received a provisional payment equal to 90% of the estimated value of the shipment, amounting to approximately US$4.9 million.
TVIRD and MRI have agreed to put arrangements in place whereby MRI may in future make prepayments to TVIRD, based on physical deliveries to the Santa Maria Port warehouse and legally binding Holding Certificates, prior to the subsequent shipment of concentrate cargoes.