To reduce debt facility expenses, increase cash flow for growth plans
TVI Resource Development (Phils.), Inc. (TVIRD) announced today that its has retained Argosy Partners Inc. (Argosy) to assist the company in its efforts to refinance the debt facility it entered into in January 2009. Argosy is an established private investment and advisory firm focused on raising and investing capital in operating companies.
The existing debt facility was negotiated and implemented in late 2008 and early 2009 when access to capital was severely limited and tight credit markets resulted in elevated financing costs. The engagement agreement with Argosy provides that Argosy will work with TVIRD to identify alternative sources of financing to restructure the facility.
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Cliff James (second from right), Chairman and CEO of TVI Pacific Inc and TVIRD, pose with Philippine Senate President Juan Ponce Enrile (second from left) at the TVI/TVIRD booth during the opening ceremonies of Mining Philippines 2009 Conference & Exhibition, of which TVIRD was a major sponsor. Flanking James and Enrile are Chamber of Mines of the Philippines President Benjamin Philip Romualdez (far right) and TVIRD Senior Vice President and COO John Ridsdel (far left). James said TVIRD has fast-tracked defining expansion opportunities at Canatuan in Zamboanga del Norte, and are working diligently on accelerating the company’s Balabag gold project development in Zamboanga del Sur as well as advancing exploration at Tamarok, also in Zamboanga del Norte.
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Although TVIRD’s strong cash flow is more than sufficient to service the current interest, advisory fee and principal payment schedule, management believes that securing lower-cost alternatives to the current facility would better enable TVIRD to accelerate growth plans which are expected to add value for shareholders.
“By increasing cash flow through a reduction in interest expense, we will have access to additional financial resources to execute another portion of our growth plan", said Clifford James, President and Chief Executive Officer of TVI Pacific Inc., TVIRD’s Canada affiliate. "We have accelerated budgeted capital expenditures for the Sulphide Project’s Zinc Circuit and Power Line components by six months, with construction expected to commence in Q4 this year. We have also fast-tracked defining expansion opportunities at Canatuan, and are working diligently on accelerating our Balabag gold project development as well as advancing exploration at Tamarok.”