Zamboanga mine operator prepays debt

MANILA, Philippines - TVI Resource Development (Phils.) Inc. (TVIRD) has made a voluntary prepayment of $3.1 million under a debt facility it entered into early this year, reducing the loan principal by 10 percent to $27.0 million, the company said in a statement issued yesterday.

TVIRD operates the Canatuan mine in Siocon, Zamboanga del Norte.

Together with payments for accrued interest, advisory fees and a premium for the right to make the prepayment, TVIRD has so far made a cash payment of $6.0 million.

“Reducing the principal debt outstanding by 10 percent results in a meaningful net reduction in TVIRD’s debt service costs going forward,” said TVIRD CEO Cliff James.

“The cash flow generated by TVIRD in recent months has enabled it to make this prepayment comfortably. Reducing future interest costs and accelerating exploration and development activities at Canatuan and Balabag and exploration projects at Tamarok, are two key targets of the current TVIRD strategy for growth,” he added.