Atlas Consolidated Mining and Development Corp. has decided to go ahead with its investment plan in TVI Resource and Development (Philippines) Ltd.
In its disclosure to the Philippine Stock Exchange, Atlas said its board had authorized the execution of an omnibus loan and security agreement (OLSA) with TVIRD covering, among others, the P42-million loan extended by Atlas to TVIRD last December 26.
The OLSA, which Atlas will execute along with other lenders of TVIRD, confirms the terms of the omnibus agreement with respect to the loan and provides Atlas with additional security.
Atlas and TVIRD are embarking on a joint venture to develop the P159-million Canatuan copper and zinc project.
Canadian TVI Pacific had been in talks with Atlas and a few other parties to secure funding for the Canatuan sulfide project and to reduce its working capital deficiency.
TVIRD’s Canatuan mine produces gold and silver ore - ingots of impure alloy silver. It plans to expand into production of copper and zinc concentrates after building a sulfide plant.
Copper and zinc are contained in a sulfide deposit underlying the current open pit gold and silver production operation.
TVIRD plants to have the sulfide plant operating by the second half of this year.
TVIRD financed the initial development and construction of the sulfide project from cash flow generated from current operations.
An estimated $14.4 million in capital cost and working capital is needed for the sulfide project.