Aberdeen Closes Sale of Entire PLASA Investment to Lithium X
TORONTO, ONTARIO--(Marketwired - Jul 11, 2017) - Aberdeen International Inc. ("Aberdeen" or the "Company") (TSX:AAB) has completed the previously-announced sale to Lithium X Energy Corp. of its remaining shareholdings of Potasio y Litio de Argentina S.A. In consideration for acquiring the 50% of PLASA held by Aberdeen, Lithium X has made a cash payment to Aberdeen of $5,000,000 and issued 6,000,000 Lithium X common shares. The Lithium X common shares are subject to the standard statutory hold period of four months, with 3,000,000 of such shares subject to trade restrictions for a further six months.
As additional, contingent consideration, Lithium X will issue to Aberdeen an additional 3,000,000 common shares if, during the three years following closing, the volume weighted average trading price of Lithium X common shares is $3.00 or more for a period of 20 consecutive trading days.
Aberdeen intends to use part of the proceeds to exercise its option to purchase from Routemaster Capital an existing 1.0% net smelter returns royalty in respect of PLASA's Sal de los Angeles lithium project. We believe the upcoming feasibility study to be completed by Lithium X will show this royalty has a value far in excess of the $2 million purchase price. Through its shareholdings in Lithium X, this PLASA royalty and additional toe-hold investments, Aberdeen has compiled a strategic portfolio of investments in battery-related material companies.
ABOUT ABERDEEN INTERNATIONAL INC.
Aberdeen International is a global resource investment company and merchant bank focused on small capitalization companies in the mining and metals sector.
For additional information, including to obtain a copy of Aberdeen's related early warning report, please visit our website at www.aberdeeninternational.ca, follow us on Facebook, Twitter and Linkedin.
Cautionary Notes
This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, Aberdeen's possible future trading and intentions, valuations of investments (including LIX shares), proposed transactions and investments, investment philosophy and liabilities and commitments. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; and other general risks of the mining and investment industries. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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Contact
Stan Bharti
Interim President and Chief Executive Officer
Aberdeen International Inc.
stan@forbesmanhattan.com
+1 416-861-2267
