Canadian firm TVI Pacific on Tuesday said it was in talks with a potential partner for the infusion of $11.5 million into the Agata nickel project in Agusan del Norte for the development of a direct shipping ore operation in the area.
In a statement, TVI said it had signed a letter of interest (LOI) related to the proposed acquisition by Prime Asset Ventures Inc. (Pavi) of a 68.42-percent interest in TVI International Marketing Ltd., which held TVI’s assets in the Philippines.
Based on the proposal, Pavi is expected to buy $1 million worth of TVI shares, or about 33.3 million shares, which represent 5 percent of the TVI-issued shares.
TVI plans to use the proceeds from the private placement for working capital.
Also, based on the LOI, Pavi is expected to acquire about two-thirds of all ordinary voting shares in TVI Marketing.
With this acquisition, Pavi will invest $11.5 million in TVI Marketing shares as well as $10 million in TVI Ltd.—another TVI subsidiary—through a secondary sale.
“The funds received from the issuance of TVI Marketing shares to Pavi are expected to be used for working capital and to advance various projects, including, most notably, the Agata direct shipping ore project (in) the Philippines,” TVI said.