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, mineral reserve estimate, or economic analysis on the Sal de los Angeles Project to support the construction and operation of a pilot plant and historically, projects that have not first established technical feasibility and economic viability have much higher risks of technical and economic failure.
Additionally, estimates regarding mineralization at the Project are considered historical estimates and, accordingly, cannot be relied upon. A qualified person has not done sufficient work to classify any estimate as a current mineral resource estimate.
Aberdeen has filed a National Instrument 43-101 ("NI 43-101") technical report on the Salar de los Angles lithium project. The independent technical report, entitled "NI 43-101 Technical Report Salar de los Angeles Project, Salar de Diablillos, Salta Province, Argentina" dated May 2, 2016, was prepared for Aberdeen by Raymond Spanjers, P.Geo. The Technical Report is available under the Company's profile on SEDAR and on the Company's website at www.aberdeeninternational.ca.
The technical information contained in this news release has been reviewed and approved by William Randall, P.Geo, who is a Qualified Person as defined under NI 43-101.
ABOUT ABERDEEN INTERNATIONAL
Aberdeen International is a global resource investment company and merchant bank focused on small capitalization companies in the mining and metals sector. African Thunder Platinum, Aberdeen's premiere investment, is a lower-cost platinum group metals project in South Africa's well-known Bushveld Complex. Aberdeen has further enhanced its investment holdings with its holding of 50% of Potasio y Litio de Argentina SA, which holds the Sal de los Angeles lithium project in Argentina.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook, Twitter, Linkedin and check out Aberdeen's YouTube Channel.
Except for statements of historical fact contained herein, the information in this press release constitutes "forward-looking information" within the meaning of Canadian securities law. Such forward-looking information may be identified by words such as "plans", "proposes", "estimates", "intends", "expects", "believes", "may", "will" and include without limitation, statements regarding, the construction and operation of the pilot facility, the budget and timetable for construction; partners' obligation and their ability to meet those obligations; the possible commercial nature of any products; joint venture and operating committee operations and decisions; the ability of the Company to generate additional value for shareholders as a result of such transactions, past success as an indicator of future success; net asset value of the Company; industry opportunities, lithium pricing and dynamics and anticipated returns. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from such statements. Factors that could cause actual results to differ materially include, among others, metal prices, competition, financing risks, acquisition risks, risks inherent in the mining industry, and regulatory risks. Most of these factors are beyond the control of the Company. Investors are cautioned not to put undue reliance on forward-looking information. Except as otherwise required by applicable securities statutes or regulation, the Company expressly disclaims any intent or obligation to update publicly forward-looking information, whether as a result of new information, future events or otherwise.