TORONTO, ONTARIO--(Marketwired - Dec. 29, 2015) - Rodinia Lithium Inc. (TSX VENTURE:RM) ("Rodinia" or the "Company") is pleased to announce that it has closed the previously announced transaction (the "Transaction") pursuant to which Aberdeen International Inc. ("Aberdeen") acquired all of the issued and outstanding shares of Potasio y Litio de Argentina SA ("PLASA"), a wholly-owned subsidiary of the Company, for an aggregate cash purchase price of $5,000,000, as follows:
- $3,000,000 has been paid by Aberdeen to Rodinia; and
- $2,000,000 to be paid by Aberdeen to Rodinia within six months.
In addition, Rodinia retains a 2% transferrable net smelter royalty ("NSR") on all commercial sales from the Diablillos lithium-potash project owned by PLASA, including the sale of potassium and lithium concentrates or products. Half of the NSR can be purchased by Aberdeen for $2,000,000 within 24 months. The remaining 1% NSR does not have a predetermined purchase price nor is it subject to any rights in regards to its purchase or disposition by Aberdeen.
Mr. William Randall, President & Chief Executive Officer, stated, "Management is pleased to conclude this transaction with Aberdeen. The transaction strengthens the Company's balance sheet and will allow Rodinia to focus on its previously announced plan to become an investment issuer and re-build shareholder value."
About Rodinia Lithium Inc.:
Rodinia Lithium Inc. is a Canadian mineral exploration and development company with a primary focus on Lithium exploration and development in Argentina.
FORWARD LOOKING STATEMENTS: This document includes forward-looking statements as well as historical information. Forward-looking statements include, but are not limited to, statements with respect to the expected benefits of the Transaction to the Company and its shareholders, the timing of the completion of the timing of the remaining payments to be made in connection with the Transaction. When used in this document, the words "anticipate", "believe", "estimate", "expect", "intent", "may", "project", "plan", "should" "target" and similar expressions may identify forward-looking statements. Although Rodinia believes that its expectations reflected in these forward looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statement. Important factors that could cause actual results to differ from these forward-looking statements include the potential inherent risks and uncertainties associated with realizing the benefits expected from the Transaction, the inherent risks of Rodinia not receiving the remaining payments to be made in connection with the Transaction and other risks disclosed in the Company's filings made with Canadian Securities Regulators. The Company does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.
This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Rodinia or any solicitation of proxies. The distribution of this communication may, in some countries, be restricted by law or regulation. Accordingly, persons who come into possession of this document should inform themselves of and observe these restrictions.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Contact Information:
William Randall
President and Chief Executive Officer
+1 (416) 309-2697