An amended subscription agreement between TVI Pacific and Foyson Resources will go ahead, pending shareholder approval in April. Both companies have made changes to the original agreement and associated joint venture struck in August 2012.
The new terms will see TVI subscribe for almost 143 million Foyson shares for a total investment of $1 million and receive 80 million options from Foyson, bringing its ownership of Foyson to 29.5%. TVI will also give Foyson a convertible loan of Aus$600,000 with the right to request repayment from Foyson through the issuance of 75 million shares and 75 million options to TVI.
TVI says this will allow it to focus resources on the Amazon Bay iron sands project and even fast track the development of an operating mine, working jointly with Foyson to identify a resource project with the potential of a near-term development and cash flow.
TVI’s chief executive officer Clifford James says, “We are very pleased with the amended agreement and arrangements with Foyson, which enable us to focus on the joint venture projects that will benefit the greatest from TVI’s financial resources and technical expertise.”
The two companies originally signed deals for the Amazon Bay iron sands JV project, the New Britain gold-copper JV project, the Massau and Tanga Island and the New Ireland option agreements. Discussions between both companies have resulted in new development plans for the projects.
TVI and Foyson have agreed that in the period until June 30, 2014, TVI will not seek to increase its percentage holding. “We will continue to proceed with the Amazon Bay joint venture. To date, the company has invested more than $725,000 in the project and has committed to a minimum project spend of Aus$2 million by December 31, 2013. TVI will leverage its strong technical expertise and experience in completing mining projects in the Philippines on time and on budget to seek ways to fast track the development of an operating project at Amazon Bay,” says Clifford James.
Foyson successfully confirmed the presence of a copper porphyry system in the New Britain JV, however both companies agree the project would be best optimized by introducing a major copper/gold producer to replace TVI.