Thank you for your recent inquiry into TVI Pacific Inc.
TVI's share price has been experiencing some severe market pressures
brought on by many factors, the most important being the current
downward trend in the price of gold. This phenomenon has been magnified
for those companies with interests overseas in the Asian region, where
the economic situation is currently in a period of flux. As a result of
these and other factors, it is understandably more difficult for pure
exploration companies to maintain desired levels of liquidity and their
operational activities.
TVI Pacific is in a good position, however, to combat this situation,
and has implemented proactive strategies of cash management and
generation in order to continue to take advantage of the opportunities
available to the Company in the Philippines.
Efforts continue to maximize revenue from both the existing small-scale
plant at the Canatuan project (recently upgraded to 80 tpd processing
capacity) and EDCO, TVI's exploration drilling subsidiary. This has met
with positive results. TVI has also joint ventured the Rapu Rapu project
with an Australian company, in a deal that is very positive for both
parties. Our joint venture focus is continuing, and we expect more news
in that regard soon.
As reported in a press release issued today, Kingking Mines Inc., the
joint venture between Echo Bay Mines Ltd (75%) and TVI (25%), has
elected not to exercise its option with Benquet Corporation on the
Kingking project. An initial feasibility study, released in April of
this year, together with further examinations of the project, concluded
that the forecasted rates of return could not meet the JV's criteria,
principally due to a $67 million dollar initial payment requirement.
TVI can now actively pursue its other ongoing projects, from which it
has received some very positive results (as described in several of our
recent update press releases).
Jarrod, I hope this has been helpful. If you require any further
information, please contact me again at your convenience.
Regards,
Cyrus Ameli
Investor Relations
TVI Pacific Inc.
tel: (403) 265-4356
e-mail: tvi-info@tvipacific.com |
