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TVI Pacific's Philippine Affiliate Reaches US$3.8 M Settlement with the Rapu-Rapu Group for Outstanding Net Smelter Tax Royalties
12/19/2012 9:52:00 AM
By: MT Newswires
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 ( KMP ) 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 ( NSR ) 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.