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Aberdeen International Inc. Provides Update on African Thunder Platinum Investment
TORONTO, ONTARIO--(Marketwired - Sept. 13, 2017) - Aberdeen International Inc. ("Aberdeen" or the "Company") (TSX:AAB) announces that African Thunder Platinum L
About this update from Aberdeen International Inc.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - Sept. 13, 2017) - Aberdeen International Inc. (\"Aberdeen\" or the \"Company\") (TSX:AAB) announces that African Thunder Platinum Limited (\"ATP\"), of which Aberdeen is a significant shareholder, has agreed to sell all of the issued and outstanding shares (the \"SHM Shares\") of Smokey Hills Platinum Mining (Mauritius) (\"Smokey Hills\"), which owns the Smokey Hills Platinum Project in South Africa, to the Sail Group of Companies (the \"Sail Group\"). The Sail Group is an international commodity trading company with a focus on chrome. The Sail Group has recently acquired two other chrome projects in the Bushveld complex that would complement the Smokey Hills assets. Background In December 2014, Aberdeen acquired a 42.25% interest in ATP. Through this investment, Aberdeen sought exposure to the expected rise in platinum prices and looked to use its South African operating experience to lead a turnaround of the Smokey Hills Platinum Project. ATP recruited South African operators and engaged the local community to re-commence production operations at the Smokey Hills project. Unfortunately, platinum prices did not pan out as projected and ATP encountered delays in consolidating neighbouring mineral concessions and permits. In April 2016, ATP decided to temporarily suspend mining operations at the Smokey Hills mine. Subsequently, ATP consulted with its work force and ultimately concluded the best way to optimize the long term value of the mine and processing facility was to suspend operations and focus on the planning and permitting that would be required once commodity prices increased. Aberdeen and the other ATP shareholders have also conducted a review of strategic opportunities and a financial restructuring of ATP. Since the Smokey Hills project was placed on care and maintenance, ATP has been largely financed through loans from Pala Investments, one of the ATP shareholders. To preserve its cash holdings, Aberdeen elected not to participate in these ATP loans. The shareholders of ATP have agreed to convert certain ATP loans made by Aberdeen and Pala. As a result of the conversion of such loans, Aberdeen will decrease its percentage ownership in ATP to approximately 18.2% of the issued and outstanding shares of ATP. Transaction Structure As consideration for the SHM Shares, ATP will receive USD$2...