TVI Pacific Inc.'s 30.66%-owned TVI Resource Development Philippines Inc. subsidiary closed a US$28.5 million omnibus loan and surety agreement with China Banking Corp. for the Balabag gold-silver project in the Philippines.
The five-year loan has a fixed interest rate per annum based on the sum of the five-year rate on U.S. dollar-denominated bonds issued by the Philippine government, plus a spread of 275 basis points.
The loan is repayable in 15 equal quarterly installments starting at the end of the sixth quarter from the initial drawdown date.
TVI Pacific said Oct. 22 that the loan will be secured by project-related agreements, insurance contract rights and a debt service reserve and payment accounts.
The company, which secured approval in 2016 to develop the 2,000 tonne-per-day project, estimated project capital expenditure totaling US$48.9 million, with the difference expected to be funded by cash generated by TVI Resource Development and Balabag.