Atlas backs out of mining project with TVI Resources

Atlas Consolidated Mining and Development Corp. (ACMDC) is no longer interested in pursuing a joint venture with TVI Resource Development (Phils.) Inc. in connection with the Canatuan copper zinc suphide project in Zamboanga del Norte.

In a disclosure to the Philippine Stock Exchange, ACMDC said the P42-million advance it extended to TVIRD and TVI International affiliates of Canada’ TVI Pacific, will now be treated as a secured six-month loan.

The Canatuan mine, considered as TVI’s most advanced project, has been put into operation as the first foreign-financed mine in the Philippines in recent years.

Instead, ACMDC and investment fund Crescent Asian Special Opportunities Portfolio infused an additional $10 million into Carmen Copper Corp., which operates the Toledo copper mine in Cebu.

Carmen Copper used to be one of the largest copper producers in Asia from 1955 until the suspension of its operations in 1994 after its mine site was hit by a typhoon.

The Toledo mine has deposits of 874 million metric tons with an average grade of 0.41 percent copper. It is seen to produce copper concentrates by the second quarter of 2008.

Initial production is seen to reach 20,000 tons per day and is seen to increase further to 42,000 tons.