Erdene Becomes First Cross-Listed Company on the Mongolian Stock Exchange, Closes an Oversubscribed Financing
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Becomes First Cross-Listed Company on the Mongolian Stock
Exchange, Closes an Oversubscribed Financing
Halifax, Nova Scotia – June 14 , 2018 – Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or " Company") is pleased to announce that it has launched a secondary listing of its
common shares on the Mongolia n Stock Exchange (“MSE”) and closed the associa ted offering of
4,000,000 common shares to Mongolian residents (“Mongolia Offering ”). The Company’s
common shares issued under the Mongolia Offering will commence trading under the symbol
“ERDN” on the MSE on or about June 19, 2018, as the first cross-listed and currently only precious
metals exploration and development company listed on the MSE.
“The Government of Mongolia has long expressed interest in having international investors list
their mining and exploration projects on the MSE as a means to develop its capital market while
providing shared benefits to local investors ,” s aid Peter Akerley, President and CEO of Erdene .
“Our listing is the result of two years of active collaboration with the Government of Mongolia to
develop the necessary framework to accommodate cross listing of companies that are listed on
international exchanges. Today we have added a significant number of new Mongolian shareholders
to Erdene by way of our offering in Mongolia and MSE listing. The high level of investor and
public interest in this offering has only strengthened our belief in the important role the local capital
markets have in financing mineral exploration and development opportunities.”
“We would like to welcome Erdene on the Mongolian Stock Exchange as the first cross -listed
company in Mongolia ,” said Altai Khangai, the CEO of the MSE . “This opens tremendous
opportunity for the Company to connect with its stakeholders in the country.”
Mr. Sumiyabazar Dolgorsuren, Mongolia’s Minister of Mining and Heavy Industry, added: “Erdene
Resource Development is the first to cross list its shares i n Mongolia , and we are grateful that
mining companies are looking to be transparent and open to the Mongolian public.”
Offering Terms
Pursuant to the Mongolia Offering, Erdene has sold 4,000,000 common shares at a price of $0.3 4
(or 640 Mongolian Tugrik ) per share for gross proceeds of $ 1,375,604 (based on today’s
Tugrik/CAD rate of 1861) under a prospectus prepared pursuant to Mongolian laws. The Company
paid a cash commission of 7% of the gross proceeds to the underwriters of the Mongolia Offering.
The Mongolia Offering was oversubscribed by 66% , however, the Company limited the issuance to
4 million shares, which were distributed to subscribers pro-rata.
The shares issued under the Mongolia Offering are expected to commence trading on the MSE on
or about June 19, 2018 . Under current Mongolian regulations, the shares listed on the MSE may
only be traded through the facilities of the MSE until de -listed or until cross -border trades are
permitted by Mongolian authorities. In addition, all shares issued pursuant to the Mongolia Offering
are subject to a four-month hold period in Canada from the closing date of the Mongolia Offering.
Proceeds of the Mongolia Offering 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.
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 kilome tres 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 Limited 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 Mongolia Offering, Erdene has 161,682,041 issued and
outstanding common shares and a fully diluted position of 183,141,320 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 dif fer 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 exp ressly 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: [email protected]
Website: www.erdene.com
Twitter: https://twitter.com/ErdeneRes