TVI Pacific’s Philippine affiliate TVI Resource Development (TVIRD) has filed a motion for reconsideration with the national Court of Appeals regarding an earlier decision denying the company’s inclusion as a creditor of the Rapu Rapu Group prior to 2012.
The Court handed down a judgement in March in which it agreed TVIRD is due to receive its Net Smelter Return (NSR) royalty beginning from the 2012 calendar year, but denied it should be paid for the years 2006 to 2008.
The Rapu Rapu Group refers to three Asian companies: Korea Malaysia Philippine Resources, Rapu-Rapu Processing and Rapu-Rapu Minerals.
The Rapu Rapu mine is in Albay province in central eastern Philippines. TVIRD assigned the Lafayette Group its mining rights and participating interest in the Rapu Rapu joint venture agreement in 1999, with TVIRD granted a 2.5% NSR.
In 2008 the Rapu Rapu Group, which had acquired the Rapu Rapu mine from the Lafayette Group, filed a petition for corporate rehabilitation and the Pasig city regional Trial Court issued a stay order on all claims against it, to which TVIRD filed a notice of claim against the Group for the unpaid NSR.
In 2009 the Court approved the final rehabilitation plan of the Rapu Rapu Group and recognized the royalty claims of TVIRD beginning in 2012, but not any claims prior to 2012.
TVIRD then filed an appeal to have royalty claims recognized with the Court of Appeals. In 2011 this Court requested the parties undergo mediation in an effort to come up with an extra-judicial settlement of the issue. Rapu Rapu Group and its creditors declined mediation and decided to wait for the decision of the Court of Appeals. On March 26, 2012 the Court of Appeals denied TVIRD’s petition.
TVI produces copper and zinc concentrates from its Canatuan mine, is developing its Balabag gold-silver property and is carrying out other exploration programs. TVI also has oil interests in various stages of discovery, drilling and exploration off-shore Philippines.