Aberdeen Acquires Diabillios Lithium-Potash Project for CDN$5 Million, Argentina

Published: January 4, 2016 |

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Aberdeen International Inc. has closed the share purchase agreement with Rodinia Lithium Inc. to purchase all of the shares of Potasio y Litio de Argentina SA. (PLASA), which holds the Diablillos lithium-potash project in Argentina.

Aberdeen will make aggregate payments to Rodinia of CDN$5,000,000, with CDN$3,000,000 to be paid on closing and CDN$2,000,000 to be paid within six months of closing. In addition, Rodinia will retain a 2.0 percent net smelter royalty in respect of the project, while Aberdeen will have the right to purchase half of this royalty for CDN$2,000,000 within 24 months of closing.

“We are thrilled to have completed the acquisition of Diablillos as our second principal investment of the year, and like African Thunder, the development of this investment will be important in management’s plan to build shareholder value going forward. While historical studies have suggested Diablillos will have very low costs and a high return in the current lithium price environment, perhaps more importantly, the project is scalable. This will allow Aberdeen to ‘right-size’ the project based on the availability of capital,” said David Stein, president and CEO of Aberdeen International.

“In additional, Aberdeen is reviewing options to get into production more quickly than previously expected with a larger project,” added Stein.

Aberdeen expects to provide a further update on its development plans for Diablillos in the first quarter of 2016.

To stop by Aberdeen International’s website, CLICK HERE

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