Stocks & Investing
Stocks and Investing
Stocks and Investing
Tue, April 17, 2012 
April 17, 2012 08:38 ET
TVI Pacific Inc. Provides An Update on Rapu Rapu
CALGARY, ALBERTA--(Marketwire - April 17, 2012) - TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF) ("TVI" or the "Company") announced today that its Philippine operating affiliate, TVI Resource Development (Phils.), Inc. ("TVIRD"), filed a Motion for Reconsideration with the Philippine Court of Appeals ("Court of Appeals" or the "Court") regarding the Court's denial for TVIRD to be included as a creditor of Korea Malaysia Philippines Resources Inc., Rapu-Rapu Processing Inc., Rapu-Rapu Minerals Inc., collectively referred to as the "Rapu Rapu Group", prior to 2012. TVIRD's Motion for Reconsideration raised with the Court issues of law in respect of the Court's March 26, 2012 judgement, in which the Court agreed that TVIRD is due to receive its Net Smelter Return ("NSR") royalty beginning calendar year 2012, but denied that the obligation should be paid to TVIRD for the years 2006 to 2008.
BACKGROUND
The Rapu Rapu mine is located in the province of Albay in the central eastern Philippines. In December 1999, TVIRD assigned the Lafayette Group its mining rights and participating interest in the Rapu Rapu joint venture agreement. As part of the consideration for the assignment, TVIRD was granted a 2.5% NSR. On February 6, 2008, the Rapu Rapu Group, which had acquired the Rapu Rapu mine from the Lafayette Group, filed a petition for corporate rehabilitation and the Pasig City Regional Trial Court issued a stay order on all claims against it. On March 19, 2008, TVIRD filed a notice of claim against the Rapu Rapu Group for the unpaid NSR.
On September 17, 2009, the Pasig City Regional Trial Court approved the final rehabilitation plan of the Rapu Rapu Group and recognized the royalty claims of TVIRD beginning in 2012; however, the plan did not recognize TVIRD's royalty claims prior to 2012. TVIRD had filed an appeal to have royalty claims recognized with the Court of Appeals. On February 16, 2011 the Court of Appeals requested the parties to mediate in an effort to come up with an extra-judicial settlement of the issue. Rapu Rapu Group and its creditors declined mediation and decided to wait for the decision of the Court of Appeals. On March 26, 2012 the Court of Appeals denied TVIRD's petition.
Regular updates on Rapu Rapu are provided in TVI's Annual Information Form ("AIF") and in the Managements' Discussion and Analysis("MD&A"). The MD&A and AIF can be accessed on SEDAR at [ www.sedar.com ] and are also posted on TVI's website at [ www.tvipacific.com ].
About TVI Pacific Inc. (TSX:TVI) (OTCQX:TVIPF)
TVI Pacific Inc. is a publicly-traded resource company focused on the production, development, exploration and acquisition of resource projects in the Philippines. TVI produces copper and zinc concentrates from its Canatuan mine, is developing its Balabag gold-silver property and is carrying out other exploration programs. TVI also has oil interests in various stages of discovery, drilling and exploration off-shore Philippines.
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The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein.
