Litigation mentioned in conf call?Is the conf call available yet for download?
The Convertible Royalty Debenture Agreement (the “Agreement”) also provides the Company with a right of first refusal on any future financings that Simmers completes on any of their properties. Under the Agreement, the Company has 60 days to match financing terms provided by a third party to Simmers.
During calendar 2007, Simmers completed a third party financing without providing the Company the right to match the terms offered. Following discussions with Simmers, which did not resolve the Company’s concerns, Aberdeen initiated legal proceedings to claim damages caused by the breach of the Agreement. The litigation is before the courts and the final outcome is uncertain.