MANILA – TVI Pacific Inc. said it has completed an initial closing with Prime Resources Holdings, Inc. as outlined in its recent announcement which included the following transactions.
US $2 million was paid by PRHI to purchase 33,333,333 common shares in the capital of TVI (“TVI Shares”), at a price of US $0.06 per share, which shares represent approximately 5% of the total number of issued and outstanding TVI Shares.
And US $1.545 million was invested by PRHI in TVI International Marketing to purchase one deferred non-voting share of TVIIM that is redeemable at par value; US $2 million was advanced to TVI Resource Development Philippines, Inc. by PRHI, as partial payment of PRHI’s proposed investment in TVIRD; and
US $12.655 million was advanced by PRHI and placed into an escrow account – those funds represent a portion of the additional amount that PRHI has agreed to invest in TVI group entities in subsequent closings.
The TVI Shares issued pursuant to the Private Placement will be subject to trading restrictions until April 14, 2014. The subscription agreement entered into between the Company and PRHI in connection with the Private Placement provides, among other things, for the grant of a preemptive right to PRHI, pursuant to which PRHI will be permitted to maintain its percentage ownership of common shares of the Corporation in connection with certain future transactions involving the issuance of common shares from the treasury of TVI.
The funds advanced by PRHI to date are expected to be used by TVI group entities for working capital purposes and to further advance various projects.
TVI Pacific Inc. is a Canadian resource company focused on the production, development, exploration and acquisition of resource projects in the Philippines and Southeast Asia. TVI’s affiliate, TVIRD, produces copper and zinc concentrates from its Canatuan mine and is advancing its Balabag Gold-Silver project. TVI is a direct or indirect participant/operator in several joint venture projects in the Philippines and Papua New Guinea and also has an interest in an offshore Philippine oil property.
While PRHI is a wholly-owned subsidiary of Prime Asset Ventures, Inc. and is 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.
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