Closes Private Placement - Erdene Resource Development Corp
HALIFAX, June 08, 2018 - Erdene Resource Development Corp. (TSX:ERD) ("Erdene" or "Company") is pleased to announce that it has closed its non-brokered private placement ("Private Placement") announced on May 31, 2018 for proceeds of $4.12 million.Pursuant to the Private Placement, Erdene has sold 10,834,580 units at a price of $0.38 per unit for gross proceeds of $4.12 million. Each unit consists of one common share of the Company and one common share purchase warrant ("Warrant"). Each Warrant entitles the holder to purchase one common share of the Company at a price of $0.60 for 30 months from the closing date. The Company paid finder’s fees in the aggregate of $182,400 and issued 480,000 finder’s warrants in connection with the Private Placement. Each finder's warrant is exercisable into one common share of the Company at $0.60 per share, for a period of 30 months from the closing date. All securities issued pursuant to the Private Placement are subject to a four-month hold period from the closing date.
The Private Placement was completed in parallel with the launch of an offering of common shares to Mongolian residents (“Mongolia Offering”) and Erdene’s recently received approval from the Financial Regulatory Commission of Mongolia for a secondary listing of its common shares on the Mongolian Stock Exchange (“MSE”), as reported by the Company on May 31, 2018 (click here for May 31 news release). Pursuant to the Mongolia Offering, expected to close on June 14, 2018, Erdene will sell 4,000,000 common shares at a price of $0.34 per share for gross proceeds of $1,360,000. The Mongolia Offering will be completed on a firm commitment underwritten basis by BDSec SC JSC under a prospectus prepared pursuant to Mongolian laws. The underwriters of the Mongolia Offering will receive a cash commission equal to 7% of the gross proceeds raised. All securities to be issued pursuant to the Mongolia Offering will be subject to a four-month hold period in Canada from the closing date. The MSE listing is expected to be effective upon closing of the Mongolia Offering.
Proceeds of the Private Placement and Mongolia Offering are anticipated to fully fund the Company into 2019, and will be used to advance the Company's Bayan Khundii and Altan Nar gold projects, and to further explore and develop the Company’s other gold properties in southwest Mongolia, as well as for general corporate purposes.
The transactions are subject to certain conditions, including, but not limited to, the receipt of all necessary approvals including the approval and acceptance by the Toronto Stock Exchange and Mongolian Stock Exchange.
About Erdene
Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition, exploration, and development of base and precious metals in underexplored and highly prospective Mongolia. The Company has interests in four exploration licenses and a mining license in southwest Mongolia, where exploration success has led to the discovery and definition of several prospects and deposits including: Bayan Khundii – the Company’s flagship and newly discovered, high-grade, near-surface gold project; Altan Nar – an extensive, high-grade, near-surface, gold-polymetallic project located 16 kilometres northwest of Bayan Khundii; Altan Arrow – an early-stage, high-grade gold-silver project 3.5 kilometres north of Bayan Khundii; Ulaan – a recently acquired copper-gold porphyry prospect adjacent to Bayan Khundii; Khuvyn Khar – an early-stage, copper-silver porphyry project; Nomin Tal – a narrow, high-grade copper-gold discovery; and Zuun Mod – a large molybdenum-copper porphyry deposit. In addition to the above projects, Erdene has an Alliance with Teck Resources Ltd. on regional copper-gold exploration in the prospective Trans Altai region of southwest Mongolia. The Bayan Khundii and Altan Nar licenses have a 2% net smelter returns royalty (“NSR Royalty”) in favour of Sandstorm Gold Ltd. with a buy-back option to reduce the NSR Royalty to 1%. For further information on the Company, please visit www.erdene.com. After giving effect to the Private Placement, Erdene has 157,682,014 issued and outstanding common shares and a fully diluted position of 179,141,320 common shares.
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Erdene cautions that actual performance will be affected by many factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE
Erdene Contact Information
Peter C. Akerley, President and CEO or
Ken W. MacDonald, Vice President and CFO
Phone: (902) 423-6419
E-mail: info@erdene.com
Website: www.erdene.com
Twitter: https://twitter.com/ErdeneRes