Canada-based Erdene Resource Development Corporation announced that it intends to issue, by way of a non-brokered private placement, up to 4,062,500 units at a price of 0.16 USD per unit for gross proceeds of up to 650,000 USD.
Each unit will consist of one common share of the company and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to purchase one common share of Erdene at a price of 0.24 USD for a 24 month period from the closing date.
Net proceeds of the Private Placement will be used for exploration of the Company’s metal projects in Mongolia, including drilling at the company’s 100 percent owned Altan Nar gold-polymetallic project, to commence in late April. The Private Placement is expected to close on, or before, May 2nd 2014, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals including the approval and acceptance by the TSX. All securities to be issued pursuant to the Private Placement will be subject to a four month hold period from the closing date. A finder’s fees may be payable on a portion of the financing.
Altan Nar Gold Project – Drill Program
Altan Nar exploration results, announced in January this year, included multiple, high grade gold, silver and base metal zones. Follow-up drilling is expected to commence in late-April and will include 10 drill holes totaling approximately 1,000 meters. The drill program will test continuity of these high priority targets, some of which have yet to be drill tested. Erdene field crews were mobilized to site the first week of April. Detailed surface work is underway, including higher density geochemical sampling, mapping, and an expanded induced polarization survey. This work will provide a greater understanding of the extent of the multiple mineralized structures identified to date and provide a stronger base for designing a more extensive follow-up resource delineation drill program.
Targets included in the drill program will be the Discovery Zone, Union North, Union South, Maggie, Northbow and Southbow. The following section and enclosed maps provide additional details on each target.
Erdene Resource also announced that it has closed its non-brokered private placement financing with the issuance of 2,000,000 shares to Teck Resources Limited at a price of 0.175 USD per share for gross proceeds of 350,000 USD. All securities issued pursuant to the Private Placement are subject to a four month hold period. No commissions or finder’s fees will be paid in connection with the Private Placement.
This fulfils Teck’s 2014 equity investment obligation pursuant to the Strategic Alliance between Erdene and Teck announced by Erdene on April 11th, 2013. Net proceeds of the Private Placement will be used for exploration of the Company’s Teck-Alliance projects in Mongolia, including the Khuvyn Khar copper porphyry project where additional geophysical and geologic mapping programs will be completed during the second quarter.
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