Business
Aberdeen Acquires the Diabillios Lithium Project for Total Consideration of CDN$5 Million
TORONTO, ONTARIO--(Marketwired - Dec. 29, 2015) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that it has closed
About this update from Aberdeen International Inc.
[{"type":"text","content":" TORONTO, ONTARIO--(Marketwired - Dec. 29, 2015) - ABERDEEN INTERNATIONAL INC. (\"Aberdeen\", or the \"Company\") (TSX:AAB) is pleased to announce that it has closed the share purchase agreement with Rodinia Lithium Inc. (\"Rodinia\") to purchase all of the shares of Potasio y Litio de Argentina SA. (\"PLASA\"), which holds the Diablillos lithium-potash project in Argentina. In consideration for the shares, Aberdeen will make aggregate payments to Rodinia of CDN$5,000,000, with CDN$3,000,000 to be paid on closing and CDN$2,000,000 to be paid within six months of closing. In addition, Rodinia will retain a 2.0% net smelter royalty in respect of the project, while Aberdeen will have the right to purchase half of this royalty for CDN$2,000,000 within 24 months of closing. David Stein, President and CEO of Aberdeen International commented: \"We are thrilled to have completed the acquisition of Diablillos as our second principal investment of the year, and like African Thunder, the development of this investment will be important in management's plan to build shareholder value going forward. While historical studies have suggested Diablillos will have very low costs and a high return in the current lithium price environment, perhaps more importantly, the project is scalable. This will allow Aberdeen to \"right-size\" the project based on the availability of capital. In additional, Aberdeen is reviewing options to get into production more quickly than previously expected with a larger project.\" Aberdeen expects to provide a further update on its development plans for Diablillos in the first quarter of 2016. Diablillos Lithium-Potash Project The Diablillos lithium-potash brine project covers over 95% of the Salar de Diablillos located in Salta, Argentina at an average elevation of approximately 4,050 metres above sea level, and is comprised of 32 mining claims covering approximately 8,156 hectares. To date, over CDN$19 million has been spent on the project, including extensive exploration and definition drilling, pump tests, seismic & gravity geophysical surveys, basin and solute transport models; all of which collectively account for the bulk of work towards an updated pre-feasibility or feasibility study on the project which is still to be completed. The latest resource statement (dated December 22, 2011) contains a recoverable ...