Aberdeen International Inc. (AAB.TO: Quote) announced it has entered into an agreement with Premier Royalty Corporation, a private Ontario company, wholly-owned by Premier Gold Mines Limited (PG.TO: Quote), regarding the sale by Aberdeen of its 1% net smelter return royalty on gold produced from certain mineral concessions comprising Village Main Reef Limited's Buffelsfontein Mine and First Uranium Corporation's Mine Waste Solutions tailings recovery project located in South Africa or the "Royalty".
As per the terms of the Agreement, Premier Royalty has agreed to purchase the Royalty in consideration for an aggregate purchase price of $20.90 million, which shall consist of a cash payment in the amount of $11.50 million and the issuance by Premier Royalty of a convertible debenture payable to Aberdeen in the amount of $9.40 million.
The closing Date is expected to occur on or before May 31, 2012 and remains subject to the receipt of all necessary regulatory approvals, including the approval of the TSX and applicable approval of the South African Reserve Bank.
by RTT Staff Writer
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