Aberdeen receives Simmers royal payment
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2006-07-31 08:22 ET - News Release
Mr. George Faught reports
ABERDEEN RECEIVES INCREASED SECOND QUARTER ROYALTY
PAYMENT FROM SIMMERS
Aberdeen International Inc. has received payment from the $10-million
(U.S.) royalty loan facility with Simmers & Jack Mines Ltd., based on the
second-quarter 2006 gold production from Simmers's Buffelsfontein mine (Buffels).
Simmers produced nearly 34,000 ounces of gold from its South African
Buffels mine in the second quarter of 2006. Based on the average gold
price in the second quarter ($627 (U.S.) per ounce), the royalty rate was
3.45 per cent of gold produced by Simmers, providing Aberdeen with a
gold royalty equivalent of $796,600 (U.S.) for the second quarter. This
compares favourably with the first-quarter royalty payment of $606,600
(U.S.). The graduated nature of the royalty loan facility has responded
favourably to the rising gold price increasing from a rate of 2.75 per cent
in the first quarter to 3.45 per cent in the second quarter and will reach
4.75 per cent when the gold price is $750 (U.S.) per ounce or higher.