TVI Pacific has completed the final closing of various investment and financing transactions involving Prime Resource Holdings Inc (PRHI), following satisfaction of certain conditions outlined in definitive agreements executed by TVI, PRHI and others on December 11, 2013.
The Third Close involves release of all proceeds remaining in escrow, including US$4.3 million for the purchase of 3.97% of the common shares of TVI Minerals Processing; and US$1.23 million related to the sale and restructuring of subsidiaries and Class A shareholders of TVI’s Philippine associate, TVI Resource Development (Phils) (TVIRD).
It results in US$5.3 million of these transactions coming through to TVI as the repayment of inter-company advances, resulting in an aggregate US$10.650 million to TVI as a result of all transactions and US$11.850 million to TVIRD and various subsidiaries, each before tax and related fees.
At the first closing on December 13, 2013, PRHI invested US$1.545 million in TVI International Marketing Ltd (TVIIM) and US $2 million in TVI. In addition, PRHI advanced US$2 million as partial payment for its investment in TVIRD.
At the second closing on January 10, 2014, PRHI released a further US$1.305 million, representing the balance of the subscription price for PRHI’s investment in TVIIM, and US$10.12 million, representing the balance of the subscription price paid by PRHI to acquire newly issued voting shares of TVIRD and an investment in TVIRD subsidiaries. A further US$4.3 million was advanced by PRHI, representing the purchase price of voting shares in the capital of TVI Minerals Processing, a Philippine incorporated subsidiary of TVIIM.
All funds advanced by PRHI are expected to be used by TVI group entities for working capital purposes and to further advance various projects, and have been used also to undertake certain restructuring transactions affecting members of the TVI group of companies.
After giving effect to the transactions, PRHI holds approximately 5% of the total number of issued and outstanding common shares of TVI and 68.42% of the shares of TVIRD.
TVI Pacific is a Canadian resource company focused on the production, development, exploration and acquisition of resource projects in the Philippines and South East Asia. TVI’s Philippine associate, TVIRD, has to date produced copper and zinc concentrates from its Canatuan mine and is advancing its Agata Nickel DSO operation and Balabag Gold-Silver project.
PRHI is a wholly-owned subsidiary of Prime Asset Ventures, a holding corporation of utilities engaged in various industries which include water distribution infrastructure, energy and power generation as well as retail distribution, cable and antennae television, and telecommunications. www.tvipacific.com