Listed Canadian miners Mindoro Resources Ltd. and TVI Pacific Inc. (TVI) firmed up various joint venture agreements for Philippine projects.
Also, TVI has acquired voting shares and share purchase warrants of Mindoro Resources, which also has securities registered on the Australian Securities Exchange.
Mindoro Resources president and CEO Jon Dugdale said, “We are very pleased that TVI has become a significant shareholder in Mindoro, and we look forward to working alongside TVIRD through the joint venture agreements, to progress the Agata and Pan de Azucar projects to production.”
TVI president and CEO Clifford M. James said in a separate statement, “We are very pleased to have entered into various joint venture agreements with Mindoro involving the Agata and Pan de Azucar projects. As previously indicated, we believe those projects lend themselves to the type of strategy we have successfully deployed elsewhere in the Philippines to undertake mine development at low cost and on time.”
James said the due diligence done so far indicated that the Agata and Pan de Azucar projects fit with TVI’s acquisition strategy of seeking long-life mining projects with potential to generate short term cash flow.
Under a heads of agreement which the parties reported in July, TVI is set to complete a private placement of C$3.156 million in Mindoro Resources. On the loan component, TVI has agreed to lend Mindoro Resources $938,968 for the latter’s mining projects. On the joint venture component, TVI is set to fund direct shipping ore (DSO) production as well as a definitive feasibility study (DFS) on nickel processing in Mindoro Resources’ Agata Nickel Project in the Surigao mining district. TVI will also have the option to form a joint venture for Mindoro Resources’ Pan de Azucar sulphide project in Panay Island.
TVI said it had agreed to fund all of the expenditures needed to start a DSO operation in order to earn a 60 percent stake in that operation.