Agata Mining project gets add’l funding

MANILA, Philippines - The local arm of Canadian miner TVI Pacific Inc. and its joint venture partner received $8 million in financing for the ramp up of mining and exploration work in the Agata nickel laterite and limestone project in Agusan del Norte.

According to TVI Pacific, China Banking Corp. has sent a letter of advice to Agata Mining Ventures Inc. (AMVI), TVI’s joint venture firm with Mindoro Resources, for the provision of a three-year term loan facility to support the nickel direct shipping ore operations in the project area.

“We are very pleased that AMVI has been offered such substantial funding, particularly given the current state of the commodities sector, to ensure the successful ramp up of production and continued resource updates at the Agata project,” said TVI Pacific chairman and CEO Clifford M. James.

“This development serves to further support TVIRD’s goal of listing on the Philippine Stock Exchange – the achievement of which could substantially enhance its value for TVI shareholders,” he added.

TVI Pacific operates in the Philippines through its local arm TVI Resource Development (Phils), Inc.

The funds would be used to fund detailed exploration programs and resource updates at the Agata project and for general working purposes.

In addition to the $8 million term loan facility granted by Chinabank, AMVI has now received advances totaling $3 million from Tewoo Hoperay (Singapore) Pte. as part of offtake agreements signed in June and August 2014 to sell a total of 1.5 million wet metric tons (wmt) of high iron/low nickel direct shipping ore.

Commercial operations at the Agata project commenced in October this year after two years of mine development. It was able to ship out an initial volume of 55,000 WMT of nickel ore with a grade of a minimum of 48 percent iron and 0.6 percent nickel.

It is anticipated that shipments of 55,000 wmt of high-iron/low nickel ore would continue approximately every three to four weeks, with shipping rates expected to accelerate to 2.5 million wmt per year in 2015.

TVIRD owns 60 percent of the Agata project and acts as its operator.

The Agata project is situated in a major lateritic nickel producing region in Mindanao. The project is expected to benefit from its deep protected seaport, the opportunity for year-round shipping and proximity to main markets in Asia.

A mineral resource estimate shows the Agata project to have reported proven and probable reserves of 9.70 million wmt with a grade of 48 percent iron with 0.9 percent nickel.