Deal provides opportunity to extend Canatuan mine life, locate new properties
TVI Resource Development Philippines, Inc. (TVIRD) today announced that it has entered into a Heads of Terms Agreement (the “Agreement”) with DACON Corporation (DACON) toward the establishment of an unincorporated joint venture (the “Joint Venture”) to conduct exploration, development and production of mineral deposits in the area covered by TVIRD’s Application for Exploration Permit No. 61 Project (“EXPA 61” or the “Project”), otherwise known as The Greater Canatuan Tenement.
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Signatories to the Heads of Terms Agreement: (from left) Eugene Mateo, TVIRD President; Isidro Consunji, DACON Director; Cliff James, Chairman of TVIRD and President and CEO of TVI Pacific Inc (TVIRD’s Canadian affiliate); Jaime Garcia, DACON Vice President for Procurement and Logistics; and John Ridsdel, TVIRD Chief Operating Officer.
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The project area is immediately north of TVIRD’s producing copper-zinc mine at Canatuan and mineable ore deposits discovered in the area will be transported to TVIRD’s Canatuan plant for processing. TVI previously announced the identification of mineral deposits at Tabingan, Matigdao and Palalian, under EXPA 61, after completing initial mapping, channel and geochemical sampling. This partnership with DACON provides the opportunity to extend the mine life at Canatuan by further evaluating these already identified deposits and possibly locating new ones.
“We are extremely pleased to be entering into this partnership with DACON. We view this as a first step in establishing a long-term relationship with an important Filipino conglomerate,” said Cliff James, Chairman of TVIRD. “In addition to having an important presence in the Zamboanga Peninsula, our new partner has a number of mineral properties around the country for which our combined talents could prove mutually beneficial over the longer term.”
Under the Agreement, TVIRD and DACON agree to form the Joint Venture within 90 days from the execution of the Agreement. The Joint Venture interest will be 70% TVIRD and 30% DACON, with TVIRD acting as the operator. The joint venture partners will fund an exploration program in The Greater Canatuan Tenement for a period of two years amounting to a maximum of US$2 million, to be shared in accordance with their interests in the Joint Venture.
Next Steps
• Exploration Permit approval – currently underway
• Drill Targets – previously identified and presently being defined
• Expedited exploration drilling program
DACON is part of the DMCI Group of Companies reputed for its extensive holdings in general construction, coal mining, power generation, infrastructure and real estate development and manufacturing in the Philippines. For more information, please visit www.dmciholdings.com.