TVI Pacific and its Philippine affiliate TVI Resource Development (Phils) (TVIRD), announce that Agata Mining Ventures Inc (AMVI) completed two shipments of high-iron/low-nickel direct shipping ore (DSO) for gross proceeds of US$1.34 million during December from the Agata project in northern Mindanao.
AMVI is a joint venture company in which TVIRD holds a 60% interest and is the operator. TVI also announces that AMVI has signed an offtake agreement with Tewoo Hoperay (Singapore) Pte Ltd for two shipments of higher grade saprolite ore and that it has drawn funds from the $8 million loan facility extended by China Banking Corporation to help fund the ramp up of the DSO operation and the exploration work under way at the Agata nickel laterite and limestone projects.
“We are very pleased that the Agata DSO operation continues to generate revenues and cash flows and that Tewoo continues to be a loyal buyer of both the nickel laterite and saprolite ore,” says TVI and TVIRD chairman Clifford James. “We are also pleased that AMVI has been able to access substantial funds to ensure the successful ramp-up of production and continued resource updates at the Agata project as these developments all serve to further support TVIRD’s goal of listing on the Philippine Stock Exchange in 2015 – the achievement of which could substantially enhance value for TVI and its shareholders.”
The December shipments represented the fourth and fifth in the series of shipments that commenced in October 2014 of limonite high-iron/low nickel ore. The shipments left the port of Payong-Payong in Agusan del Norte, Mindanao, in accordance with an offtake arrangement with Tewoo.
The fourth shipment totalled 55,300 wet metric tonnes (wmt) of ore containing 0.9% nickel and was completed on December 13. AMVI expects to receive gross revenue of US$691,000 for the shipment, pending final assay and price adjustments.
The fifth shipment totalling 51,900 wmt of ore containing 0.89% nickel and 48.79% iron was completed on December 20, 2014. AMVI expects to receive gross revenue of US$649,000 for the shipment, pending final assay and price adjustments.
As of December 20, 2014, production remained steady and remaining inventory was approximately 41,863 wmt of limonite high-iron/low nickel ore with nickel and iron content levels of 0.75% and 49.05%, respectively. AMVI expects to complete another two shipments of limonite ore this month.