TVI Pacific Inc. Announces Final Closing of Philippines Investment and Financing Transactions

July 8, 2014

Final Close Receives US $5.53 million


CALGARY, July 8, 2014 /CNW/ – TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF)
(“TVI“) announced today that it has completed the final closing (the “Third Closing“) of various investment and financing transactions involving Prime
Resource Holdings, Inc. (“PRHI“), following satisfaction of certain conditions outlined in the
definitive agreements executed by TVI, PRHI and others on December 11(th), 2013. Additional information relating to the transactions with PRHI
(the “Transactions“) are set out in (i) the news releases disseminated by TVI on December
11, 2013, December 13, 2013 and January 10, 2014, (ii) TVI’s December
20, 2013 material change report, and (iii) the December 11, 2013
investment agreement (the “Investment Agreement“) entered into between TVI, PRHI and others (which represents the
“umbrella” agreement between TVI and PRHI for the Transactions), all of
which have been filed with various securities regulatory authorities in
Canada and are available through SEDAR (under TVI’s profile).

Highlights of the Third Close:

    1. The release of all proceeds remaining in escrow, including:

       a)  US $4.3 million for the purchase of 3.97% of the common shares
       of TVI Minerals Processing, Inc.

       b)  US $1.23 million related to the sale and restructuring of
       subsidiaries and Class A shareholders of TVI's

             Philippine associate, TVI Resource Development (Phils.) Inc.

    2. US $5.3 million of the above transactions coming through to TVI as
       the repayment of intercompany advances, resulting in an aggregate US
       $10.650 million to TVI as a result of all Transactions and US
       $11.850 million to TVIRD and various subsidiaries, each before tax
       and related fees.

At the first closing on December 13, 2013, PRHI invested US $1.545
million in TVI International Marketing Limited (“TVIIM“) (through the purchase of one deferred non-voting share of TVIIM
(redeemable at par value)) and US $2 million in TVI (through the
purchase of 33,333,333 common shares of TVI at a price of US $0.06 per
share). In addition, PRHI advanced US $2 million as partial payment
for its investment in TVIRD.

At the second closing on January 10, 2014, PRHI released a further i) US
$1.305 million, representing the balance of the subscription price for
PRHI’s investment in TVIIM, for which PRHI has received a second
deferred non-voting share of TVIIM that is redeemable at par value; and
ii) US $10.12 million, representing the balance of the subscription
price paid by PRHI to acquire newly issued voting shares of TVIRD and
an investment in TVIRD subsidiaries. A further US $4.3 million was
advanced by PRHI (and placed into an escrow account), representing the
purchase price of voting shares in the capital of TVI Minerals
Processing, Inc., a Philippine incorporated subsidiary of TVIIM.

All funds advanced by PRHI are expected to be used by TVI group entities
for working capital purposes and to further advance various projects,
and have been used also to undertake certain restructuring transactions
affecting members of the TVI group of companies (including the
repurchase of all the outstanding TVIRD Class A shares). The
Transactions, as outlined in TVI’s December 11, 2013 news release and
described in the Investment Agreement, reflect an aggregate investment
by PRHI of US $22.5 million. After giving effect to the Transactions,
PRHI holds approximately 5% of the total number of issued and
outstanding common shares of TVI and 68.42% of the total number of
outstanding voting shares of TVIRD.

The Transactions are now complete and have provided an aggregate US
$10.650 million to TVI and US $11.850 million to TVIRD and various
subsidiaries, each before tax and related fees, while a net US $350,000
has been used to repurchase all of the outstanding TVIRD Class A

About TVI Pacific Inc.

TVI Pacific Inc. is a Canadian resource company focused on the
production, development, exploration and acquisition of resource
projects in the Philippines and Southeast Asia. TVI’s Philippine
associate, TVIRD, has to date produced copper and zinc concentrates
from its Canatuan mine and is advancing its Agata Nickel DSO operation
and Balabag Gold-Silver project.

TVI holds a 30.66% indirect interest in TVIRD and the assets owned by
TVIRD (including Canatuan, Balabag, the Agata Mining and the Agata
Processing Joint Ventures, the Pan de Azucar Mining and Processing
Joint Ventures, and various exploration properties), a 23.0% equity
interest in Foyson Resources Limited, a 14.4% equity interest in
Mindoro Resources Ltd., 100% of TG World Energy Corp., and a 10%
interest in the Amazon Bay Iron Sands project (for which the
exploration license is held by Titan Mines Limited, a company in which
Foyson holds 50% shareholding and has an option to acquire the
remaining 50%).

TVIRD continues to be operator of the Agata and Pan de Azucar joint
ventures. On April 28, 2014, the Agata Mining Joint Venture announced
it has received the Declaration of Mining Project Feasibility (“DMPF“) and clearance to develop a port facility for the proposed direct
shipping ore (“DSO“) operation of the high-iron laterite resources at the Agata Project.
Shipping of the high-iron laterite is expected to commence through the
third quarter of 2014.

TVIRD has an option to earn a 60% interest in the Agata Mining Joint
Venture upon commencement of commercial production subject to (i) TVIRD
having expended a minimum of $2 million within 12 months of the date of
the Agata Mining Option and Joint Venture Agreement (“AMVI Agreement“), and (ii) commercial production at Agata having commenced within 3
years of the date of the AMVI Agreement. Under the AMVI Agreement,
TVIRD is required to fund all expenditures associated with the
establishment of the mining operation.

As at March 31, 2014, TVIRD has incurred a total of $2,360,034 and
earned 59% of shares in the Agata Mining Joint Venture, which remain in
escrow until satisfaction of other requirements. TVI has a 30.66%
indirect ownership interest through TVIRD in the interest to be earned
in the Agata Mining Joint Venture as a result of the PRHI transaction.

For further information on TVI’s operations please refer to the
Management’s Discussion and Analysis available on TVI’s website www.tvipacific.com or under our profile on SEDAR (www.sedar.com).

About Prime Resource Holdings, Inc.

PRHI is a wholly-owned subsidiary of Prime Asset Ventures, Inc. (“PAVI“). PAVI is a holding corporation of utilities engaged in various
industries which include water distribution infrastructure, energy and
power generation as well as retail distribution, cable and antennae
television, and telecommunications.

The Toronto Stock Exchange has neither approved nor disapproved of the
information contained herein.


This news release contains certain forward-looking information (referred
to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws.
Forward-looking statements are often, but not always, identified by the
use of words such as “anticipate”, “plan”, “intend”, “estimate”,
“scheduled”, “expect”, “may”, “will”, “should”, or similar words
suggesting future activities or outcomes. In particular, this news
release includes forward-looking statements respecting certain
transactions provided for in definitive agreements entered into with
PRHI (the “Transactions”) and uses of the proceeds advanced by PRHI in connection with the
Transactions. Forward-looking statements relating to the Transactions
are based upon the terms of the definitive agreements entered into with
PRHI. Forward-looking statements respecting use of proceeds are based
upon various assumptions and factors, including, but not limited to,
the terms of the definitive agreements entered into with PRHI,
discussions between representatives of TVI and representatives of PRHI
and the current business plans, budgets and strategies of TVI and its
subsidiaries and affiliates, all of which are subject to change. Accordingly, readers should not place undue reliance upon the
forward-looking statements contained in this news release and such
forward-looking statements should not be interpreted or regarded as
guarantees of future outcomes.

The forward-looking statements contained in this news release are made
as of the date hereof and TVI does not undertake any obligation to
update publicly or to revise any of the included forward-looking
statements, except as required by applicable Canadian securities law. The forward-looking statements of TVI contained in this news release are
expressly qualified, in their entirety, by this cautionary statement. Various risks to which TVI, its subsidiaries and affiliates are exposed
in the conduct of their business are described in detail in the TVI’s
Annual Information Form for the year ended December 31, 2013, which was
filed on SEDAR on March 19, 2014, and is available at www.SEDAR.com.

SOURCE TVI Pacific Inc.

Source: PR Newswire

comments powered by Disqus