TVI Pacific Inc. (TVI.TO) announced today that TVI's Philippine
operating affiliate, TVI Resource Development (Phils.), Inc.
(TVIRD) has signed a memorandum of agreement (MOA) with Korea
Malaysia Philippines (
) Resources, Inc., Rapu-Rapu Minerals, Inc. and Rapu-Rapu
Processing, Inc. (Rapu-Rapu Group). The MOA outlines terms for the
settlement of outstanding Net Smelter Return (
) payments to TVIRD.
On 16 December 1999, the parties entered into a Deed of
Assignment of Mining Rights and Joint Venture Participating
Interest in which TVIRD assigned to the Rapu-Rapu Group all of
TVIRD's right, title and interest in the Participating Interest in
the Joint Venture and TVIRD Group Assets in consideration of an
Assignment Price, which included the NSR of 2.5%. Rapu-Rapu Group
satisfied the Assignment Price except for the NSR.
The MOA now confirms agreement between TVIRD and the Rapu-Rapu
Group in the gross sum amount of US$3,844,720 for the period 2005
through Q3 2012. TVIRD is to receive US$3,075,776, which is net of
20% U.S. withholding taxes of US$768,944, and is to receive payment
according to the following schedule:
US$500,000 on 21 December 2012
US$858,592 on 31 January 2013
US$858,592 on 28 February 2013
US$858,592 on 31 March 2013.
TV1's shares are up 25% to 2.5 cents in early trade.
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