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Aberdeen Investee Company PLASA Enters Into Pilot Production Joint Venture Agreement for the Sal de los Angeles Project
TORONTO, ONTARIO--(Marketwired - May 12, 2016) - Aberdeen International Inc. ("Aberdeen", or the "Company") (TSX:AAB) is pleased to announce that its 50% owned
About this update from Aberdeen International Inc.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - May 12, 2016) - Aberdeen International Inc. (\"Aberdeen\", or the \"Company\") (TSX:AAB) is pleased to announce that its 50% owned investee company, Potasio y Litio de Argentina SA (\"PLASA\"), which owns 100% of the Sal de los Angeles lithium brine project (\"Sal de los Angeles Project\", or the \"Project\") in Argentina, has entered into a joint venture agreement (\"JV Agreement\") with Salta Exploraciones SA (\"SESA\") for the development of a pilot lithium production facility at the Project. SESA is a consortium of Argentina-based engineering and construction firms with extensive experience in the design, construction and operation of lithium brine facilities in Argentina's Puna region, where Sal de los Angeles is located. The JV Agreement establishes a joint venture for the construction and operation of a pilot facility, which will be initially designed to produce approximately 2,500 tonnes per annum (\"tpa\") of lithium carbonate equivalent (\"LCE\"). The Project has not been the subject of a feasibility study and there is no guarantee the pilot plant will successfully produce a commercial product on a profitable basis or at all. Under the terms of the JV Agreement, in order to earn a 50% stake in the joint venture, SESA must contribute an estimated US$6 million or the required amount for the construction and operation of an initial 2,500 tpa LCE ponding facility by incurring all construction and overrun costs, including the costs associated with one full year of post-construction operation. PLASA must contribute US$3.3 million over the next twelve months, with an initial contribution of US$200,000 to be made within 30 days of receiving all necessary permits, in consideration for a 30% contributing participation in the joint venture and the right to sell any lithium products. PLASA will also be fully carried for the remaining 20% of the joint venture in consideration for contributing brine from existing wells on the Project. The agreement has a 25-year term. SESA will be the operator of the joint venture and will report to an operating committee, which will be comprised of four members, two of whom will be appointed by PLASA and two will represent SESA. SESA shall submit detailed engineering plans within 60 days of signing for review and approval by the operating committee. The JV Company s...