Mindoro Resources has joined forces with TVI Pacific in a partnership which will progress two of its most promising projects on Mindanao Island. The joint venture (JV) will fund the Agata nickel laterite project in Surigao district to direct shipping ore (DSO) production, as well as completing a definitive feasibility study (DFS) for a nickel processing plant, with the payment of almost Can$1 million as a bridging loan advanced to Mindoro. Agata has an NI 43-101 mineral resource of 42.76 million tonnes @ 1.01% nickel.
Part of the agreement’s conditions includes the right for TVI to earn a 60% interest in the joint venture with the expenditure of Can$2 million to establish the DSO operation. TVI can also earn a 60% interest in the second stage of the project to establish a processing facility at the site upon the delivery of a DFS, including pilot-scale metallurgical testing, third-party engineering studies and documentation.
TVI will also have the option to form a JV to develop the Pan de Azucar sulphide project within the next 12 months, for a payment of Can$200,000. Terms of this option include a further Can$2 million investment to Mindoro for a 51% stake with the share increased to 60% for an additional Can$3 million.
All joint ventures entered into between the two companies would be operated by TVI and overseen by a management committee of TVI and Mindoro representatives in proportion to their respective interests.
Mindoro’s president Jon Dugdale says, “We are very pleased with the planned strategic investment from TVI Pacific, and the proposed joint ventures, with such a successful Philippines mine and processing plant operator. The proposed joint ventures optimize the opportunity for Mindoro to achieve DSO cashflow production in the near term, as well as maintain a substantial stake in a potential major processing project down the track.”
TVI is a Canadian-based company which has a focus on production, development, exploration and acquisition of Philippines resources through its affiliate TVIRD. It produces copper and zinc concentrates at Canatuan in western Mindanao and is in pre-development at the Balabag gold and silver project.
Mindoro announced a major restructure of its Philippines assets in June this year, with the aim of selling its key gold and copper-gold assets to Red Mountain Mining. This agreement is expected to be finalized next month.