RE:RE:RE:About News ... Potash By-product ??? Rodinia Agrees to Sell Diablillos Project to Aberdeen International
TORONTO, ONTARIO--(Marketwired - Oct. 8, 2015) - Rodinia Lithium Inc. (TSX VENTURE:RM) ("Rodinia" or the "Company") has entered into a definitive agreement (the "Agreement") with Aberdeen International Inc. ("Aberdeen") to sell all of the shares of its wholly-owned subsidiary, Potasio y Litio de Argentina SA. ("PLASA"), to Aberdeen (the "Transaction"). PLASA holds a 100% interest in the Diablillos lithium-potash project ("Diablillos" or the "Project") located in Argentina.
Under the terms of the Agreement, Rodinia will receive an aggregate cash payment of $5,000,000 as follows:
- $250,000 shall be placed into an escrow account within five business days of the signing of the Agreement and such amount shall be released to Rodinia upon closing of the Transaction or, subject to certain conditions, in the event Aberdeen fails to close the Transaction;
- $2,750,000 payable on the closing date of the Transaction; and
- $2,000,000 to be paid by Aberdeen to Rodinia within six months of the closing date of the Transaction.
In addition, Rodinia will retain a 2% transferrable net smelter royalty ("NSR") on all commercial sales from the Project, including the sale of potassium and lithium concentrates or products. Half of the NSR can be purchased by Aberdeen for $2,000,000 within 24 months of the closing date of the Transaction. The remaining 1% NSR does not have a predetermined purchase price nor is it subject to any rights in regards to its purchase or disposition by Aberdeen.