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Aberdeen Expects to Receive 1% Gold Smelter Royalty


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NAV will increase significantly on receipt of NSR

February 4th, 2009

Toronto, Ontario, February 4th 2009: ABERDEEN INTERNATIONAL INC. (“Aberdeen”, or the “Company”) (Toronto Stock Exchange: AAB) Aberdeen is pleased to announce that it anticipates receiving a 1% gold royalty on the Simmer & Jack Mines Limited (“Simmers”) Buffels underground mine and First Uranium Corporation’s (“First Uranium”) Tailings Recovery Project, which is expected to offer superior value for Aberdeen Shareholders compared to the equity conversion alternative.

Under the terms of the Royalty Loan Agreement, Aberdeen has the right to convert its US$10 million loan facility into Simmers equity at a conversion rate of R0.80 per share, subject to Simmers shareholder approval. Shareholders are encouraged to visit Aberdeen’s profile on Sedar at www.sedar.com where the Loan Agreement was posted as a material document on June 16th, 2008.

As a result of Aberdeen’s October 16, 2008 request to convert its loan facility to equity, Simmers has now released its Shareholders Circular with a shareholders meeting scheduled for February 16th 2009.

In the Circular, the Board of Simmers unanimously recommend that shareholders vote against the conversion of the loan facility into equity, stating that the Simmers' share price is currently trading at a significant discount, due in part to the delay in production ramp-up at its gold operations. The Johannesburg Stock Exchange requires that 75% of shareholder votes cast must be in favour of the loan being converted and it therefore appears unlikely that the conversion of the loan into equity will take place.

If Simmers' shareholders do not approve the conversion of the loan into equity, the Loan Agreement provides that a 1% Net Smelter Royalty will be payable to Aberdeen on all gold produced from Simmers' Northwest Assets including First Uranium’s Tailings Recovery Project. It is Aberdeen's position that the 1% Net Smelter Royalty will be payable from October 16, 2008 being the date upon which the notice to convert was served on Simmers. In addition to the 1% Net Smelter Royalty, the terms of the Loan Agreement provide that the US$10 million loan which matured on December 31, 2008 (together with arrears of interest and royalties) will be re-payable immediately upon Simmers' shareholders voting against the conversion of the loan into equity.

Simmers disputes that the US$10 million loan must be repaid and has taken the position that if the conversion into equity is not approved, the loan terminates and converts into the 1% Net Smelter Royalty.

In the interim, Simmers and First Uranium have made only a small partial payment towards the outstanding fourth quarter royalty and interest in the amount of approximately US$1.6 million which was due on 15 January 2009. A legal letter requesting immediate payment of the outstanding balance has been delivered to both companies.

In addition to receiving a gold royalty on the Buffels underground mine and First Uranium’s (TSX:FIU)Tailings Recovery Project, Aberdeen would also be entitled to a 1% royalty on any gold produced from the greater Buffels Area comprising twelve claims including the Hartebeestefontein 422IP claim which contains the Strathmore project on which a pre-feasibility study was completed in January 2008. Simmers has reported that this project could potentially provide 11.9 million ounces of gold production which would be subject to the to the Company’s 1% life of mine royalty. Aberdeen reported a NAV at October 31, 2008 of $0.69 per share which included a conservative estimate for the value the royalty loan facility at $29 million or $0.30 per share which was based on receiving the Simmers shares. In prior periods, the Company had estimated the fair value of the loan facility on a discount cash flow analysis of expected cash flow from the remaining graduated royalty and interest payments, the repayment of the US$10 million principal and the 1% NSR for the life of the mines.

If the conversion is not approved by Simmers shareholders and the NSR is received, the fair value of the loan facility at October 31, 2008 would more appropriately be based on a discounted cash flow analysis which was estimated at $53.6 million. This estimate would include gold production from both Simmers and First Uranium and the key assumptions used in determining the fair value of the loan facility include the following: 1) receipt of a graduated royalty until December 31, 2008; 2) repayment of the US$10 million loan on December 31, 2008 and thereafter receipt of a 1% NSR for the life of the mines; 3) 5% discount rate; 4) US$850 gold price through fiscal year 2010, and US$700 thereafter; and, 5) life of mines and gold production estimates as publicly disclosed by Simmers and First Uranium.

Aberdeen’s 3rd quarter NAV would have increased from $0.69 to $0.88 per share based on receiving the 1% NSR compared to receiving the Simmers shares, thus providing Aberdeen shareholders with superior value.

George Faught, Aberdeen’s President and CEO, stated, “While we find the Simmers Board recommendation regarding our equity conversion request to be completely incomprehensible, we will be extremely pleased to receive the superior value provided by the 1% gold royalty on the Greater Buffels Property. We are also delighted that the value of the royalty from the Fist Uranium Tailings Recovery project was recently substantiated by the announced Gold Wheaton (TSX:GLW) purchase of up to 25% of the estimated 2.1 million ounces to be produced from this project”.

Stan Bharti, Executive Chairman of Aberdeen stated; “We believe that the uncertain outcome of the Aberdeen Loan Agreement has been detrimental to our share price. With the uncertainty removed by the grant of a valuable 1% royalty, Aberdeen shareholders should better understand the economics of the gold royalty and investment portfolio held by Aberdeen”.

About Aberdeen International Inc:

Aberdeen is a publicly traded global investment and merchant banking company focused on small cap companies in the resource sector. Aberdeen will seek to acquire significant equity participation in pre-IPO and/or early stage public resource companies with undeveloped or undervalued high-quality resources. Aberdeen will focus on companies that: (i) are in need of managerial, technical and financial resources to realize their full potential; (ii) are undervalued in foreign capital markets; and (iii) operate in jurisdictions with moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies. The Corporation’s intention will be to optimize the return on its investment over an 18 to 24 month investment time frame.

Aberdeen International Inc.

Please visit the Company’s web site at www.aberdeeninternational.ca or write us at smoore@aberdeeninternational.ca
For further information please contact:

George Faught Stan Bharti
President and CEO Executive Chairman
Tel: (416) - 861 – 5887 Tel: (416) - 861-5876

Cautionary Notes

Cautionary Note Regarding Forward-Looking Information 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, valuations of investments, valuation of the royalty and the shares issuable on equity conversion, outcome of the Simmers shareholders meeting, assumptions underlying valuations, outcome of potential disputes regarding interpretation of the royalty agreement, and third party projections of gold production , 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 state 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: litigation risks; gold prices; third party risks; general business, economic, competitive, political and social uncertainties; general other risks of the mining industry and investment industry. 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.