TVIRD completes fifth shipment of copper concentrates from Canatuan mine
TVI Resource Development (Phils.), Inc. (TVIRD) completed its fifth shipment of copper concentrates from the Canatuan Mine on August 6, 2009.
In accordance with the offtake arrangement between TVIRD and MRI Trading AG (MRI), a shipment of approximately 5,317 dry metric tonnes (dmt) of copper concentrates was shipped from the TVIRD warehouse facility at Santa Maria Port in Siocon, Zamboanga del Norte. TVIRD is to receive a partial payment from MRI, value dated August 11th, amounting to approximately US$5.1 million or 90% of the initial estimated value of the cargo less applicable deductions, for the copper concentrates shipped. Under the offtake agreement, the 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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A backhoe scoops copper concentrates inside the TVIRD warehouse at the Sta. Maria Port in Siocon, Zamboanga del Norte. The fifth shipment brings TVIRD’s total expected gross revenues under the Sulphide Project to US$27 million.
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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 26,200 dmt of copper concentrate. Of this production, 24,441 dmt have been shipped through the offtake agreement with MRI, generating estimated gross revenues of approximately US$27 million pending final assay tests and prices.
It is anticipated that future shipments of approximately 5,000 dmt to MRI will occur every four to six weeks depending on specific shipping and marketing arrangements.
TVIRD received payments of US$325,934 and US$441,097 (net of bank charges) on July 9, 2009, respectively representing the 10% amounts outstanding from the second and third shipments of copper concentrates, adjusted for final assays and prices.