The Prospector News

Aberdeen Closes Sale of Royalty to Premier Royalty Corporation for $20.9 Million

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

Aberdeen Closes Sale of Royalty to Premier Royalty Corporation for $20.9 Million

   \"\"

ABERDEEN INTERNATIONAL INC. (TSX:AAB) announce it has closed its previously announced sale 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 to Premier Royalty Corporation, a private Ontario company, wholly-owned by Premier Gold Mines Limited (TSX:PG).

Pursuant to the terms of the royalty purchase agreement entered into among the Company, Premier Royalty and Premier on April 24, 2012 (the "Agreement"), Premier has made to Aberdeen a cash payment in the amount of $11,500,000 and issued a convertible debenture payable to Aberdeen in the amount of $9,400,000 (the "Convertible Debenture"). The unpaid amounts owing under the Convertible Debenture shall accrue interest at a rate of 8% per annum and upon Premier Royalty completing a public offering, or any other comparable going public transaction (a "Going Public Transaction"), the Convertible Debenture shall automatically convert into that number of common shares of Premier Royalty equal to the principal amount and accrued interest divided by the amount equal to the offering price or deemed price in connection with the Going Public Transaction less a 10% discount.

In the event that a Going Public Transaction is not completed on or before May 31, 2013 the principal amount and accrued interest under the Convertible Debenture shall be repaid by Premier Royalty in cash to Aberdeen in full, or if Premier Royalty elects, and subject to the approval of Premier, Premier Gold shall satisfy the Convertible Debenture on Premier Royalty's behalf by issuing that number of common shares of Premier Gold equal to the principal amount and accrued interest divided by the volume weighted average price of the common shares of Premier Gold for the five trading days immediately prior to the May 31, 2013.

Further, in the event Premier Royalty completes a Going Public Transaction, Premier Royalty shall issue to Aberdeen that number of warrants of Premier Royalty equal to 0.5 multiplied by the number of common shares of Premier Royalty issued under the Convertible Debenture (each whole warrant, a "Warrant"). Each Warrant shall entitle Aberdeen to acquire one common share of Premier Royalty at a price representing a 25% premium to the price per Premier Royalty common share issued in connection with a Going Public Transaction for a period of two years from the closing date of the Going Public Transaction.

George Faught, the Chief Executive Officer of Aberdeen, commented, "We are pleased to have completed the sale of our royalties, which represents the realization of approximately $0.24 per share. It is worth highlighting that we have received a total return of approximately $49 million on our original US$10 million royalty loan investment. We intend to use the proceeds from the sale to enhance our actively managed investment portfolio to maximize shareholder value."
David Stein, the President and Chief Operating Officer of the Company, commented, "This strategic transaction also gives us a large stake in Premier Royalty, an exciting new royalty company with a growing gold royalty portfolio. We are seeing many interesting investment opportunities and this cash injection will allow us to pursue our core business and take advantage of this weak market."
Posted June 3, 2012

Share this news article

MORE or "UNCATEGORIZED"


Leading Edge Materials Announces Closing Of C$3,520,000 Non-Brokered Private Placement and New Control Person

Leading Edge Materials Corp. (TSX-V: LEM) (Nasdaq First Nor... READ MORE

August 7, 2020

X-Terra Resources Closing of a Strategic Private Placement

X-Terra Resources Inc. (TSX-V: XTT) (FRANKFURT: XTR) is pleased t... READ MORE

August 7, 2020

GoviEx Completes Non-Brokered $5M Private Placement

GoviEx Uranium Inc. (TSX-V: GXU) (OTCQB: GVXXF) is pleased to ann... READ MORE

August 7, 2020

Fireweed Zinc Closes $5.2 Million Private Placement

FIREWEED ZINC LTD. (TSX-V: FWZ) is pleased to announce closing of... READ MORE

August 6, 2020

McEwen Mining Reports Q2 2020 Results

McEwen Mining Inc. (NYSE: MUX) (TSX: MUX)today reported its... READ MORE

August 6, 2020

Copyright 2020 The Prospector News - Site design by Spyderbaby Productions