Aberdeen Receives First Payments
Aberdeen Receives First Payments Under New Gold Royalties
3/17/2009 5:17:45 PM - Market Wire
Simmer and Jack and First Uranium make 4th Quarter 2008 payment under 1% NSR
TORONTO, ONTARIO, Mar 17, 2009 (Marketwire via COMTEX News Network) --
ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) Aberdeen is pleased to announce that it has received the first payments on its recently awarded 1% gold royalties for the period from October 16th 2008 to December 31, 2008. Aberdeen holds a 1% NSR on all of Simmer and Jack Mines Limited ("Simmers") Northwest Assets, and the Mine Waste Solutions Tailings Recovery project held by First Uranium Inc.
Aberdeen was awarded the life of mine 1% Royalties as a consequence of Simmer's shareholders rejecting Aberdeen's request to convert its Loan Agreement to equity. The Shareholders' meeting was held on February 16th, 2008.
Aberdeen estimates the fair value of the 1% NSR, based on a discounted cash flow analysis, to be in the range of $42.5 million to $50.9 million or $0.45 to $0.54 per share. This estimate includes gold production from both Simmers and First Uranium with a long term gold price from $700 to $825.
George Faught, Aberdeen's President and CEO, stated, "The Life of Mine 1% royalty from both Simmer and Jack and First Uranium provides significant value to the Company. We believe that as a result of Simmers' purchase of the Tau Lekoa mine from Anglogold Ashanti and First Uranium's gold stream financing with GoldWheaton, both companies are significantly stronger to carry out their respective mine plans and maximize the cash flow to Aberdeen under the Royalties."
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.