TVIs Philippine Affiliate JV Receives Letter of Advice from Chinabank for $8 Million Loan for the Agata Project

TSX: TVI OTCQX: TVIPF

CALGARY, Nov.

20, 2014 /CNW/ - TVI Pacific Inc.

(TSX:TVI) (OTCQX:TVIPF) ("TVI" or "the Company") and TVIs Philippine affiliate, TVI Resource Development (Phils.), Inc. ("TVIRD") are pleased to announce that Agata Mining Ventures Inc. ("AMVI"), a joint venture company in which TVIRD holds a 60% interest and is the operator, has received a Letter of Advice from China Banking Corporation ("Chinabank" or the "Lender") granting an US$8 million term loan facility (the "Facility") to support AMVIs high iron/low nickel direct shipping ore ("DSO") operations and exploration work at the Agata project located in northern Mindanao, the Philippines. 

"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," stated Mr.

Clifford M.

James, Chairman and CEO of TVI and Chairman of TVIRD.

 "This development serves to further support TVIRDs goal of listing on the Philippine Stock Exchange – the achievement of which could substantially enhance its value for TVI shareholders."

In addition to being granted the US$8 million Facility by Chinabank, AMVI has now received advances totaling US$3 million from Tewoo Hoperay (Singapore) Pte.

Ltd, a subsidiary of Tianjjn Hoperay Mineral Limited Company, a major Chinese State Owned Enterprise, as part of offtake agreements signed in June and August 2014 to sell a total of 1.5 million wet metric tonnes of high iron/low nickel DSO.  This brings the total amount of funding that AMVI is able to secure for the project to US$11 million.  AMVI expects to be able to arrange similar commitments for additional funds in the future if necessary.

If AMVI draws upon the Facility, it will use the funds to ramp up operations at the Agata DSO project, to fund detailed exploration programs and resource updates at the Agata nickel laterite and limestone projects, and for general working purposes.  Details of these programs will be announced in the upcoming weeks.

Terms of the Loan Facility

Per the Chinabank Letter of Advice, the term of the Facility is three years and provides for a six-month grace period before repayments of the principal amount are to commence, spread equally over 10 quarterly periods, beginning at the end of the third quarter.

 The interest rate of the Facility is fixed at a competitive rate for three years, payable quarterly in arrears to start at the end of the first quarter from the initial drawdown date. 

The Facility is also accompanied by an additional PHP10 million Domestic Bills Purchase ("DBP") Line available to AMVI at prevailing interest rates up to June 30, 2015.

The Facility and DBP contemplates that the obligations of AMVI under those instruments will be secured by the suretyship of Prime Asset Venture Inc. (68.32% owner of TVIRD), pledge of AMVI shares held by TVIRD, assignment of AMVIs rights on the operating agreement between AMVI and Minimax Mineral Exploration Corporation, assignment of AMVIs rights and receivables in the Offtake Agreement of Limonite Nickel Ore, and assignment of AMVIs rights in the Contract for Services.

The Chinabank Facility is still subject to approval by the AMVI Board.

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.  TVIs affiliate, TVIRD, has to date produced copper and zinc concentrates as well as gold and silver from its Canatuan mine and has now commenced loading high-iron/low nickel ore with its Agata DSO project.  TVIRD also continues to advance its Balabag Gold-Silver project.  TVI is a direct or indirect participant/operator in several joint venture projects in the Philippines and Papua New Guinea and also has an interest in an offshore Philippine oil property.

In addition to retaining a 30.66% indirect interest in TVIRD and other Philippine subsidiaries, TVI continues to directly hold (i) 20.04% equity interest in Foyson Resources Limited ("Foyson") (ii) a 14.4% equity interest in Mindoro; (iii) its 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%); and (iv) its 100% investment in shares of TG World Energy Corp.  

IMPORTANT INFORMATION REGARDING FORWARD-LOOKING STATEMENTS

Certain information set out in this News Release constitutes forward-looking information.  Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "intend", "could", "might", "should", "believe", "scheduled", "to be", "will be" and similar expressions.  Forward-looking statements in this News Release are based upon the opinions and expectations of management of the Company as at the effective date of such statements.  Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will prove to have been correct.  Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied by such forward-looking statements.  These factors include, but are not limited to, such things as inherent risks associated with the exploration and development of mining properties, ultimate recoverability of mineral reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, new laws (domestic or foreign), changes in administrative practices, changes in exploration plans or budgets, and availability of equipment and personnel. 

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.  Forward-looking information respecting cash flows anticipated from future production of high-iron/low nickel  DSO at the Agata Mining Project, is based upon high-iron/low nickel DSO prices in effect as at the date of this News Release, managements forecasts of trends in prices of  high-iron/low nickel DSO, current mining rates of high-iron/low nickel DSO from the Agata Mining Project, estimates of the size of the high-iron/low nickel DSO reserves at Agata Mining Project, the current development plan for Agata Mining Project, TVIRDs current budget and overall strategy for Agata Mining Project, which plans, budget and strategy are all subject to change.  Forward-looking information respecting the anticipated timing of future shipments of high-iron/low nickel DSO from the Agata Mining Project, is based upon current mining rates of high-iron/low nickel DSO from the Agata Mining Project, the terms of the third party offtake agreement for the purchase of high-iron/low nickel DSO produced at the Agata Mining Project, estimates of the size of the high-iron/low nickel DSO reserves at the Agata Mining Project, the current development plan for the Agata Mining Project, TVIRDs current budget and overall strategy for the Agata Mining Project, which plans, budget and strategy are all subject to change.  The forward-looking statements of the Company contained in this News Release are expressly qualified, in their entirety, by this cautionary statement.  Various risks to which the Company is exposed in the conduct of its business (including mining activities) are described in detail in the Companys Annual Information Form for the year ended December 31, 2013, which was filed on SEDAR on March 19, 2014 and is available under the Companys profile at www.SEDAR.com.  Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this News Release to reflect subsequent events or circumstances.

SOURCE TVI Pacific Inc.

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