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Gold/Mining/Energy : TVI Pacific TVI (TSE) -- Ignore unavailable to you. Want to Upgrade?

To: gemsearcher who wrote (140)	1/12/2000 11:13:00 AM
From: Buckey	Read Replies (2) \| Respond to of 152

I saw it - Npot sure why they would do this - They dont seem to be getting much in return. here it is TVI to sell 25% interest in Rapu Rapu TVI Pacific Inc TVI Shares issued 108,353,351 Jan 11 close $0.055 Wed 12 Jan 2000 News Release Mr. Cyrus Ameli reports TVI Pacific has signed an agreement to sell all of the company's 25-per-cent interest in the Rapu Rapu project, Philippines, to Lafayette Mining NL. TVI will retain a 2.5-per-cent net smelter return royalty in the project. Lafayette has been exploring and developing the project under a joint venture agreement entered into in October, 1998, under which it was earning a 63.75-per-cent interest by spending $3-million (U.S.) (on the project over a period of four years. In exchange for its interest in the project, TVI will receive an immediate cash payment from Lafayette of $500,000 (U.S.), 3.3 million of that company's common shares, which are currently trading at 17 Australian cents (value of approximately $538,000), and 3.3 million share purchase options exercisable at 20 Australian cents at any time over a four-year period. Lafayette will have the option to purchase the 2.5-per-cent net smelter return under certain conditions. The common shares will be free-trading, as will those received upon exercise of the share purchase options. Lafayette has recently completed a positive preliminary feasibility study for a mine at Rapu Rapu, and has obtained an equity financing package of approximately $3.5-million (U.S.) from Lion Selection Group Limited (Australia), and underwriting support from Investa AG (Switzerland) for further financing of approximately $1.1-million (U.S.). Lafayette has also accepted an offer "in-principle" from Standard Bank Limited (U.K.) to provide a project finance facility of up to $35-million (U.S.) to cover the capital cost of the project plus working capital as indicated by the preliminary feasibility study. Lafayette has also obtained a corporate loan facility of $3-million (U.S.) for current working capital purposes and is now proceeding with a bankable feasibility study in addition to conducting an aggressive exploration program to increase the size of the known deposit. "We are very pleased with the deal that we have arranged with Lafayette," said Clifford M. James, president, chief executive officer and chairman of the board of TVI. "The sale of our interest in Rapu Rapu allows TVI to realize significant value from the project immediately, without having to make further cash contributions to development and exploration work when Lafayette completes its earn-in on the project (which was expected shortly). It also reduces our exposure to any risk involved in the project's development, allowing us to indirectly participate in future earnings with proceeds from the retained net smelter return royalty and the potential increase in value of Lafayette's shares. The proceeds of this sale will be used for a near-term expansion of TVI's exploration activities, advancing the development of Canatuan and for general working capital purposes." (c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com