TVI Pacific pares down debt

MANILA, Philippines - TVI Pacific Inc., the Canadian parent of TVI Resource Development Phils. Inc. (TVIRD), continues to pare down debt. In an announcement to the Canadian bourse, TVI said it has made a third voluntary prepayment of $6 million under the debt facility it entered into in early 2009, reducing the original principal it owes by 66 percent to $10.3 million.

In addition to the principal prepayment amount of $6 million, accrued interest, advisory fees and a premium for the right to make the prepayment, the total cash payment made by TVIRD amounts to $8 million.

TVI president and chief executive officer Cliff James, said “the cash flows generated from our Canatuan mine have had a significant impact on reducing the company’s outstanding debt.”

He continued that “not only are we able to make this third payment comfortably, we also continue to fasttrack development drilling at Balabag, pursue mine life expansion opportunities at Canatuan and advance plans to resume exploration activities at amarok”.

TVIRD’s profitable operations from its Canatuan mines allowed its mother firm TVI to increase last year its net income to $18.322 million from a net loss in 2008 of $12.714 million.

Based on its audited, consolidated financial and operational results for the year ended

Dec. 31, 2009, TVI Pacific increased its net revenue to $67.103 million from $5,972 million in 2008. The Canadian mining firm also increased its operating cash flow to $21,661,992 in 2009 from a deficit of $13,506,114 in 2008.

James described 2009 as a “significant year for TVI,” attributing the mining firm’s financial turnaround to a number of positive developments in its Philippine mining operations.

He reported that “after the sulphide plant at the Canatuan mine reached commercial production on March 1, 2009, we were able to consistently ship concentrate almost every

four weeks to generate cash flow.”