Mindoro Resources has signed a secured promissory note to receive up to Can$1.3 million from joint venture (JV) partner TVI Pacific to fund operations for 12 months. The loan will also help finance an initial acquisition payment to Minimax Mineral Exploration for the remaining 25% interest in the Agata Nickel Project.
Mindoro is negotiating to acquire the additional interest from Minimax, which will give it a 40% stake in the Agata high-iron laterite direct shipping operation (DSO), limestone DSO operation and Agata processing operation, once TVI earns its 60% interest in these projects.
Agata is being advanced for feasibility and permitting for a DSO operation which will commence in late 2013, subject to economic viability. Phase two will advance preferred processing technology to pilot testing, followed by a definitive feasibility study by the end of the year. TVI has started pilot-plant testing to further define technical parameters to be used in producing a bankable feasibility study.
Mindoro may receive up to Can$1.3 million from TVI based on monthly draw scheduling and funds will be repayable within 12 months of the first draw-down. There is no minimum draw down amount, however, and funds, with interest, are repayable earlier without penalty.
Mindoro will accrue interest at the greater of 15% per annum, or TVI’s cost of capital for funds obtained for this purpose. A promissory note will be secured by shares in Mindoro’s wholly-owned subsidiary, MRL Nickel Philippines.
Mindoro has a 75% interest, and an option to acquire the remaining 25%, in the Agata Nickel Project in Mindanao and the Pan de Azucar Sulphur-Copper-Gold Project at Iloilo. TVI has the option to earn up to a 60% interest in these projects by meeting earn-in requirements announced in September 2012. Mindoro also holds a 53.3% stake in ASX-listed Red Mountain Mining, which has a 100% interest in the Batangas gold and copper-gold projects.