TORONTO, ONTARIO--(Marketwire - May 18, 2012) - ABERDEEN INTERNATIONAL INC. ("Aberdeen", or the "Company") (TSX:AAB) today announces that the value of its investment portfolio as at April 30, 2012, the end of its first fiscal quarter for the year ended January 31, 2013, was approximately $61.8 million including a cash balance of $2.0 million. This equates to a value of approximately $0.71 per share based on Aberdeen's investment portfolio alone and does not include the value of its gold royalties. This report of the portfolio value is not equivalent to the "Net Asset Value" or "NAV" that has been previously reported by Aberdeen as it does not include assets and liabilities of the Company that are not treated as investments. Rather, this report refers only to the cash, equity investments (private and public), option-type investments (e.g. warrants) and corporate debt/loans receivable of the Company.
The value of the investment portfolio decreased from the fourth quarter results for the period ending January 31, 2012 by approximately $21.4 million or 25.7%. First quarter financial results are expected to be released on or before June 15, 2012 which includes the Company's royalties as well as other assets and liabilities.
|April 30, 2012||January 31, 2012||April 30, 2011|
|Cash on hand||2,018,923||0.02||7,372,118||0.09||7,427,116||0.09|
Aberdeen's President and Chief Operating Officer, David Stein noted, "During our first fiscal quarter we experienced extraordinarily weak markets for our sector, which we could realistically compare to late 2008 in terms of the volatility and negative performance for many of our holdings. During these periods, Aberdeen maintains true to its long-term strategy with its largest holdings focused on companies holding advanced-staged world-class resource assets in commodities such as gold, potash and iron ore continues. Where ever possible we continue to pursue opportunistic long-term investments."
Sale of Royalty to Premier Royalty
The Company entered into an agreement dated April 25, 2012 with Premier Royalty Corporation ("Premier Royalty"), a wholly-owned subsidiary of Premier Gold Corporation, to sell its 1% net-smelter-return royalty on gold produced from certain mineral concessions comprising Village Main Reef Ltd.'s Buffelsfontein mine and First Uranium Corp.'s Mine Waste Solutions tailings recovery project located in South Africa (the "Agreement"). Pursuant to the terms of the Agreement, Premier Royalty has agreed to pay Aberdeen an aggregate purchase price of $20.9 million, consisting of a cash payment of $11.5 million and the issuance by Premier Royalty of a convertible debenture payable to Aberdeen in the amount of $9.4 million (see press dated April 25, 2012). The Company expects the transaction to close on or before May 31, 2012.
Normal Course Issuer Bid
During the quarter, Aberdeen commenced a new Normal Course Issuer Bid ("NCIB") that will terminate on February 26, 2013. Under the current NCIB, the Company purchased 101,900 shares for cancellation at an average cost of $0.57. Subsequent to April 30, 2012, the Company purchased for cancellation an additional 72,700 shares at an average cost of $0.52. Management believes the combination of a secure and growing dividend combined with an active NCIB program is the best way to optimize the capital structure and enhance shareholder value at this time.
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/or (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.
For additional information, please visit our website at www.aberdeeninternational.ca and follow us on Facebook and Twitter: AberdeenAAB.
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 anticipated closing date with respect to the sale of the royalty; past success as an indicator of future success; net asset value of the Company; the potential of investee companies and the appreciation of their share price; the future intentions of the Company with regard to its shareholdings; the Company's plan of business operations; and anticipated returns. 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, 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.