THE BOURSE WHISPERER: Foyson Resources has signed a Heads of Agreement (HOA) to enter into a strategic relationship with TSX-listed company TVI Pacific to explore and develop Foyson’s mineral projects in Papua New Guinea.
TVI Pacific is a Canada-based company focused on the production, development, exploration and acquisition of resource projects in the Philippines.
“The company is delighted to enter into this strategic relationship with TVI to develop Foyson’s assets in PNG,” Foyson Resources chairman Doug Halley said in the company’s announcement to the Australian Securities Exchange.
“TVI has excellent skills and demonstrated competencies in exploring, developing and operating resource projects in the Asia Pacific region and we welcome them to both our share register as an aligned strategic partner and to assisting in developing our projects in PNG.”
The HOA covers the terms of a number of proposed transactions to be conducted between the two companies.
These will involve a private placement of Foyson shares, to be carried out in two tranches, two joint ventures and the right to enter two other joint ventures and a secured loan.
TVI will acquire up to 25 per centof Foyson’s expanded share capital via a placement to be completed in two tranches.
The first tranche will consist of 68 million shares in total equal to approximately 9.96 per centof Foyson’s issued capital at 1.3 cents per share raising $884,000.
Following receipt of shareholder approval, TVI has the right to subscribe for a second tranche of 160 million shares to be issued at 1.5 cents per share raising a further $2.4 million.
TVI and Foyson have agreed to enter joint ventures to develop Foyson’s PNG tenements at Amazon Bay and New Britain with options over the exploration licence applications on New Ireland and Massau and Tanga Islands.
“The Foyson projects represent an exciting opportunity to diversify TVI into a new country with strong Government support for mining and to diversify TVI’s asset mix and we are excited to be pursuing these projects with Foyson,” TVI Pacific chairman and president Clifford M. James said.
TVI has the exclusive right to conduct due diligence on Foyson, its subsidiaries and operations until the close of business (Australian Eastern Standard Time) on Friday 24 August 2012.
Subject to the first tranche of the placement transaction closing by this date, this period of exclusive due diligence will be extended until 8 October, 2012.
If TVI determines to subscribe for Tranche 2 of the placement, the exclusive due diligence period will be extended to 30 November, 2012.