Aberdeen International Inc.

Aberdeen International Inc.

August 04, 2009 07:30 ET

Aberdeen Launches Legal Action Against Simmers and First Uranium

TORONTO, ONTARIO--(Marketwire - Aug. 4, 2009) - ABERDEEN INTERNATIONAL INC. ("Aberdeen" or the "Company") (TSX:AAB) announces that it has filed a Statement of Claim against Simmers and Jack Mines Ltd. and First Uranium (Proprietary) Limited, which is a subsidiary of First Uranium Corporation, to recover the US$10 million convertible loan and the balance of the graduated gold royalty for the fourth quarter of 2008. The aggregate amount of damages claimed by Aberdeen is US$11.4 million.

Aberdeen provided Simmers with a three year US$10 million convertible loan that matured on December 31, 2008. Pursuant to the terms of the Loan Agreement, on October 16, 2008 Aberdeen called for conversion of the loan facility to equity which the Simmers shareholders subsequently voted against on February 16, 2009. As a result of this shareholder decision, the US$10 million loan was due on December 31, 2008 and Aberdeen became entitled to a 1% life of mine royalty on all gold produced from the Simmers Buffels mine and the First Uranium Mine Waste Solutions tailings recovery project and any other gold produced from the greater Buffels area. The terms of the loan agreement provides that the 1% NSR is in addition to the graduated royalty and the repayment of the US$10 million loan principal.

Aberdeen has engaged Werksmans a leading South African law firm to enforce its rights under the loan agreement.

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 (iii) operate in jurisdictions with moderate local political risk. Aberdeen will seek to provide value-added managerial and board advisory services to companies. The Corporation's intention will be to optimize the return on its investment over an 18 to 24 month investment time frame.

Aberdeen International Inc.

Please visit the Company's web site at www.aberdeeninternational.ca or write us at smoore@aberdeeninternational.ca

Cautionary Notes

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 statements with respect to the conduct and the strategy of our claim; the merits of our claim; the receipt of damages in connection with our claim; and the anticipated timetable of the claim. 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, litigation 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.

Contact Information

  • Aberdeen International Inc.
    George Faught
    President and CEO
    (416) - 861-5887
    Aberdeen International Inc.
    Stan Bharti
    Executive Chairman
    (416) - 861-5876