Aberdeen International (TSX:AAB) has closed its agreement with Rodinia Lithium to purchase Rodinia’s Diabillos lithium-potash project in Argentina. Aberdeen expects to provide further updates on its development plans for Diabillos.
As quoted in the press release:
In consideration for the shares, 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% 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.
Aberdeen president and CEO, David Stein, said:
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. In additional, Aberdeen is reviewing options to get into production more quickly than previously expected with a larger project.
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