TVIRD announces completion of sixth shipment of copper concentrates produced at Canatuan
TVI Resource Development (Phils.), Inc. (TVIRD) has completed its sixth shipment of copper concentrates produced at the Canatuan Mine on August 31, 2009. The concentrates were shipped from the TVIRD warehouse facility at Santa Maria Port in Siocon, Zamboanga del Norte in accordance with the offtake arrangement previously entered into between TVIRD and MRI Trading AG (MRI).
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Stevedores on a landing craft transport secure a bucket full of copper concentrates for loading on a vessel bound for China. TVIRD’s 6th copper concentrate shipment brings the company’s total expected gross revenue to US$34.1 million for 2009.
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TVIRD expects to receive a total of US$5.4 million from MRI for roughly 5,264 dry metric tonnes (dmt) of copper concentrates, representing approximately 90% of the estimated value of the total shipment. Final payment for the remaining sale price of the concentrates (approximately 10%) is due once final details relating to weight, assays and prices are determined.
This shipment occurred four weeks after the previous shipment, reflecting increased operating throughput and concentrate production achieved by the mine in August. It is anticipated that future shipments of approximately 5,000 dmt each will occur approximately every four weeks depending on specific shipping and marketing arrangements.
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 31,300 dmt of copper concentrate. Of that production, 29,705 dmt has been sold through the offtake agreement with MRI, bringing the company’s total expected gross revenue to US$34.1 million for 2009. Funds generated from the sale of the copper concentrates are expected to be allocated by TVIRD to working capital and debt service.