03:41 PM EDT, 05/28/2024 (MT Newswires) -- TVI Pacific Inc. ( TVIPF ) was slightly lower after announcing Tuesday that it had entered into a funding commitment agreement on May 27, 2024 with Prime Resources Holdings, Inc., whereby the lender has agreed to commit to fund shortfall amounts to the extent that the issuer is unable to pay such amounts as they become due.

Pursuant to the terms of the Funding Commitment Agreement, a statement noted, the lender has agreed to fund certain legacy expenses of the company, provided that the aggregate amount of such expenses shall not exceed near $3.3 million; and the costs and expenses of TVI incurred in the normal and ordinary course of its business which are necessary to enable TVI to continue its operations in the same manner and to the same extent as conducted immediately prior to the date of the Funding Commitment Agreement for a period of three years and in an annual amount not to exceed approximately $1.95 million.

Tuesday's statement noted the advances will be evidenced by the issuance of unsecured interest-bearing promissory notes, which are expected to accrue interest at a rate of prime plus 2% per annum and, subject to certain acceleration events, mature 18 months after the date of issuance.

Concurrently with entering into the Funding Commitment Agreement, the lender advanced two loans in the aggregate principal amounts of $144,658 and $110,301 by way of unsecured interest-bearing promissory notes, each substantially on the above terms and which, subject to certain acceleration events, mature in November 2025.

The company intends to use the proceeds available from the Promissory Notes and the Funding Commitment Agreement to fund certain accrued expenses of the company and for working capital and general corporate purposes.

TVI Pacific Inc. ( TVIPF ) is a Canadian resource company focused on mining projects in the Philippines.

Price: 0.02, Change: -0.01, Percent Change: -25.00