Mindoro Resources has arranged for a Can$500,000 bridge loan from TVI Resource Development (Phils) with the proceeds primarily used to fund outstanding obligations to Minimax Mineral Exploration Corporation for the acquisition of Minimax’s 25% interest in the Agata project. Other proceeds will be used for outstanding obligations to Mindoro’s former CEO Tony Climie as well as for general working capital.
Mindoro is TVIRD’s joint venture partner in Agata Mining Venture Inc (AMVI), which operates the Agata nickel/iron laterite direct shipping ore (DSO) project; and in Agata Processing Inc (API), which is in the final stages of a definitive feasibility study on the Agata nickel processing project. The Agata projects are in northern Mindanao, the Philippines.
The bridge loan has the following key terms: 8% per annum interest rate; principal and accrued interest will be due on the earlier of January 31, 2015 or upon receipt of the proceeds from a proposed $2 million convertible debenture issue to TVIRD; the loan will be secured by the shares of Mindoro’s Philippine subsidiary, MRL Nickel Phils; upon maturity of the loan, Mindoro will reimburse TVIRD’s legal expenses up to a maximum of $30,000.
Mindoro has also undertaken negotiations to issue a Can$2 million convertible debenture to TVIRD on similar financial terms as the interim loan, except with a two year term and a conversion feature in accordance with the rules of the TSX Venture Exchange.
Mindoro has joint venture arrangements with TVIRD on the Agata and Pan de Azucar projects in the Philippines. TVIRD is also owned by Prime Resources Holdings (68%) and TVI Pacific (31%) who also own 26% and 14%, respectively, of Mindoro’s issued and outstanding shares.