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Aberdeen Provides Further Details on the Pilot Production Agreement at the Sal de los Angeles Lithium Brine Project
TORONTO, ONTARIO--(Marketwired - June 7, 2016) - Aberdeen International Inc. ("Aberdeen", or the "Company") (TSX:AAB) would like to provide further information
About this update from Aberdeen International Inc.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - June 7, 2016) - Aberdeen International Inc. (\"Aberdeen\", or the \"Company\") (TSX:AAB) would like to provide further information regarding the proposed pilot production joint venture agreement at the Sal de los Angeles lithium brine project (\"Sal de los Angeles Project\", or the \"Project\"). The joint venture agreement establishes a joint venture with Salta Exploraciones SA (\"SESA\") for the construction and operation of a pilot facility at the Project. The joint venture agreement stipulates the pilot plant will be designed to produce initially approximately 2,500 tonnes per annum (\"tpa\") of lithium carbonate equivalent (\"LCE\"). As stated in our May 12, 2016 press release, 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. Pursuant to the joint venture 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 the stipulated pilot 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 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. In addition, PLASA will 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. The purpose of the pilot program is not to commence commercial production but to utilize the expertise and experience of its new joint venture partner, SESA. Aberdeen highlights SESA will be responsible for any cost overruns required until the pilot facility is fully built. 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 the Project is located. At the request of the Ontario Securities Commission, Aberdeen clarifies there is currently no mineral resource estimate, miner...