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TVI PACIFIC INC. ANNOUNCES DISPOSITION OF CHINESE OPERATIONS
TVI Pacific Inc.
(TSX: "TVI" or the "Company") announced today that it
has disposed of its Chinese exploration and drilling operations through
the sale of the outstanding shares of its subsidiary Tiamut
International Limited to an arms length third-party. TVI's Chinese exploration and drilling operations
were conducted indirectly through Hunan Pacific Geological Exploration
Inc. ("HPGEI"), a wholly owned subsidiary of Tiamut International, incorporated under the laws of
the People's Republic of China.
The sale price of the
Tiamut International shares was US $1,980,000:
US $ 1,680,000 was paid to TVI Pacific at closing. Under the sale
agreement relating to the disposition transaction, the balance of the
purchase price, US $300,000, is to be held in escrow for a period of one
year. The sale agreement further provides that if no claims are
made by the purchaser in respect of agreement (for breach of
representations and warranties, for example), the holdback amount (and
accrued interest) is to be paid to the Company. In the sale agreement,
TVI agreed that it will not compete with the business of Tiamut International and Hunan Pacific Geological
Exploration Inc. in the People's Republic of China for a period of three
years.
The principal assets
of the Company's Chinese exploration and drilling business consisted of
six drilling rigs and associated drilling equipment and the registration
of HPGEI as a wholly-owned foreign enterprise under the laws of the
People's Republic of China.
TVI Pacific continues to indirectly hold and operate the drilling
business conducted by EDCO, which owns sixteen drill rigs in the Philippines and Kyrgyzstan.
The President of TVI
Pacific Inc., Cliff James, noted: "We are very pleased with the
timely sale of these non-core assets. As part of the sale the buyer has
assumed various liabilities of HPGEI. The assumption of
those liabilities and the net proceeds from this sale have
improved TVI's working capital position. Late last year TVI made a
decision to refocus all of its efforts on its core assets in the Philippines.
The Company believes the Philippines
continues to provide an attractive platform to
facilitate growth through blue sky exploration, near term development and
production."
About TVI Pacific
Inc. (TSX: TVI)
TVI Pacific Inc. is a
publicly traded Canadian mining company focused on exploring for and
producing precious and base metals within district scale systems in the Philippines
and other Asian countries. The Company's interest in the Canatuan Mine
and its other Philippine assets are held through its affiliate, TVI
Resource Development (Phils.) Ltd. TVI's most advanced project, the
Canatuan Mine, currently produces gold and silver dor�.
Further
Information: Clifford M. James, President and CEO
Paul Moon, Director, Corporate Communications (403) 265-4356
The Toronto Stock Exchange has neither approved
nor disapproved of the information contained herein.
2000, 736 - 6
Avenue S.W. Calgary, Alberta T2P 3T7
Tel: (403) 265-4356 Fax: (403) 264-7028
Website:
http://www.tvipacific.com E-mail:
tvi-info@tvipacific.com
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