Erdene Resource Development Corp. (TSX:ERD) (MSE:ERDN) is pleased to announce that it has closed its previously announced non-brokered private placement raising gross proceeds of $2,533,345. The Offering, announced on February 12, 2019, was oversubscribed from the initial targeted proceeds of $1.75 million. Erdene’s management, directors and employees subscribed for 10% of the Offering.

Pursuant to the Offering, Erdene has sold 11,014,544 units of the Company at a price of $0.23 per Unit. Each Unit consists of one common share and one common share purchase warrant. Warrants are exercisable by the holder into one common share of the Company within two years of the closing date, at a price of $0.40 per share if exercised within twelve months of the closing date and at a price of $0.50 per share if exercised more than twelve months after the closing date. Erdene paid finder’s fees in the aggregate of $62,116 and issued 270,070 finder’s warrants in connection with the Offering.  The finder’s warrants are exercisable on the same terms as the unit Warrants.  

Proceeds of the Offering will be used to fund the independent Pre-Feasibility Study of the Company’s Khundii Gold Project (the “Project”), the mining license applications for the Project’s properties, potential acquisitions, including areas of interest recently opened through the Mongolian Government’s license tender process, and for general working capital purposes.

Securities issued under the Offering are subject to a four month hold period from the closing date of the Private Placement. 

Background on the Khundii Gold Project

Erdene’s deposits are located in the Edren Terrane, within the Central Asian Orogenic Belt, host to some of the world’s largest gold and copper-gold deposits. Although epithermal gold and porphyry copper-gold deposits are well documented across the border in China and along the Belt’s westward trend, exploration in Mongolia was limited until the mid-1990s, when the country opened its lands to foreign exploration. Exploration since that time in southeast Mongolia led to the discovery of the world-class Oyu Tolgoi gold-copper deposit. Erdene has been the leader in exploration in southwestern Mongolia over the past decade and is responsible for the discovery of the Khundii Gold District. The District is comprised of multiple high-grade gold and gold/base metal prospects, two of which are being considered for development: Bayan Khundii and Altan Nar. The Company has to date invested US$17 million in exploration and resource development on the Bayan Khundii and Altan Nar projects which are referred to collectively as the Khundii Gold Project.

About Erdene

Erdene Resource Development Corp. is a Canada-based resource company focused on the acquisition, exploration, and development of precious and base 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 the Khundii Gold District. Erdene Resource Development Corp. is listed on the Toronto and Mongolia stock exchanges.