TORONTO, ONTARIO--(Marketwired - Nov. 14, 2014) - Aberdeen International Inc. (TSX:AAB) ("Aberdeen" or the "Company") further to its press release dated November 11, 2014 the Company announces that it has made an initial investment of $4,674,785 in the aggregate into a privately held Mauritius company, African Thunder Platinum Ltd. ("ATP") to indirectly acquire certain advanced stage platinum property interests located in South Africa (the "Project"). Aberdeen intends to lead the investment up to USD$15,000,000 in invested capital to facilitate the acquisition of the Project and is in active discussions with financing partners. It is anticipated that Aberdeen will commit up to a maximum of USD$7,500,000 with respect to this investment before December 31, 2014. Upon closing ATP will acquire a 69.75% interest in the Smokey Hills mine and a 49% interest in the Kalplats platinum project.
In order to fund the transaction, Aberdeen has sold 2,850,000 common shares of Rio Alto Mining Ltd. ("RIO") and will use the proceeds of its previously announced private placement to complete the proposed acquisition.
As a result of the sale of the RIO common shares and the general weakness in the commodity markets, the net proceeds of the previously announced sale of certain portfolio investments to Landmark Equity Advisors, LLC ("Landmark") will be reduced by the value of the RIO shares sold. Currently, Aberdeen holds 4,762,500 RIO shares. The investment in ATP and Aberdeen's resulting interest upon closing of the transaction with ATP will not be sold to Landmark in connection with the portfolio sale transaction. While the Company is in continued negotiations with Landmark, there is no certainty that the transaction will completed as proposed or at all.
David Stein, President and CEO of Aberdeen noted, "Based on the current budget and projections, the total capital invested on closing should be enough to see Smokey Hills through to commercial production. In our view that Smokey Hills is an excellent entry point into the platinum sector, with the potential for low costs, and a fully-constructed concentrator plant that could be a stepping stone for further growth in the future. The Kalplats project provides ATP with another growth option in the medium term once further work is done on the asset. Our longer-term vision is to grow ATP into a low-cost mid-tier platinum producer." Closing is expected to occur on or before December 15, 2014. Closing of the transaction remains subject to the receipt of all necessary regulatory approvals and board approvals, as necessary.
In addition, Aberdeen is actively reviewing other investment opportunities for 2015 consistent with its investment strategy of making opportunistic investments in quality assets trading at cyclical lows in mining friendly jurisdictions.
Property Details
Smokey Hills is located on the Eastern Limb of the Bushveld Complex in Limpopo Province, South Africa. The mine was on care and maintenance from September 2012 to September 2014 and in October of this year, preparations began to restart operations at the mine. Production of ore is expected to begin in January 2015, and the concentrator is expected to begin production of a saleable concentrate in March 2015.
Based on a National Instrument 43-101 compliant independent mineral resource and reserve estimate completed on the property by Minxcon Projects based in South Africa, Smokey Hills has an estimated measured and indicated mineral resource of 4.18 million tonnes at 5.62 g/t 4E (platinum Pt + palladium Pd + rhodium Rh + gold Au) for a total of 755,000 oz 4E. The proportion of each element is 44% Pt : 45% Pd : 10%Rh : 1% Au. A geological loss of 6.83% has been applied to the mineral resource to account for potholes which is consistent of orebodies in this area. The resource and reserve have not been modified to reflect any socio-economic, legal or political risks. The resource and reserve totals takes into account material mined to date. The Smokey Hills property has a proven and probable mineral reserve of 3.48 million tonnes at 4.40 g/t 4E for a total of 492,000 oz 4E. The mineral reserve reflects a minimum stoping width of 115 cm, a 4E basket price of US$1,129 per ounce and a ZAR/USD exchange rate of 10.72.
The mine is expected to ramp up over 2015 and achieve full production by 2016. Annual production (on a recovered basis) is expected to range between 52,000 oz 4E and 64,000 oz 4E over six years of full production based on current mine plans. Cash costs are expected to be low relative to other South African platinum producers. Smokey Hills is a shallow underground mine with access achieved through six portals, developed prior to closure in 2012.
Kalplats is a shallow platinum-palladium resource located on the Kraaipan Greenstone Belt, in Northwest Province, South Africa. It is unique platinum project in that it is geologically distinct from the Bushveld-type deposits typical of South Africa. Mineralization is steeply dipping, and historical work focused exclusively on near-surface mineralization that could be mined in an open pit. Based on a historical pre-feasibility study disclosed in October 2009 by Platinum Australia and prepared by DRA with an effective date of September 2010, the project has a historical inferred resource of 137.4 million tonnes at a grade of 1.53 g/t (3E, platinum + palladium + gold) for a total of 6.7 million oz 3E on a 100% basis. The joint venture partner is African Rainbow Minerals Platinum Pty, and ATP will be the operator. Aberdeen's qualified person has not done sufficient work to classify this historical estimate as current mineral resources and the Company is not treating this historical estimate as current mineral resources. In addition the assumptions and conclusions used in the historical prefeasibility study are out of date and should not be relied on.
The scientific and technical information presented in this press release has been reviewed and approved by Michael Hoffman, P.Eng. who is considered a qualified person as defined by National Instrument 43-101. Mr. Hoffman is not considered independent pursuant to National Instrument 43-101.
The National Instrument 43-101 mineral resource estimate report on the Smokey Hills property was completed by South African based Minxcon Projects and the effective date of this mineral resource estimate is October 27, 2014. A National Instrument 43-101 technical report on the Smokey Hills mine describing in detail, among other things, the resource estimate, QA/QC, database validation and geological model will be filed on SEDAR within the required 45 day period.
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/or (iii) operate in jurisdictions with low to moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook and Twitter: AberdeenAAB.
Cautionary Note
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 ability to complete the proposed transaction, statements with respect to mineral resource estimates, mineral prices, exploration and development timetables and budgets and future production scenarios, the anticipated timing with respect to the proposed transaction, the ability of the Company to generate additional value for shareholders as a result of such transactions, if completed at all, the ability of the Company to enter into a definitive agreement with respect to either transaction or conclude either transactions, past success as an indicator of future success; net asset value of the Company; the potential of investee companies and the appreciation of their share price; the Company's plan of business operations; 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 outside 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.