Erdene Closes $2 Million Private Placement
TSX: ERD | MSE: ERDN
www.erdene.com [email protected]
ERDENE CLOSES $2 MILLION PRIVATE PLACEMENT
Press Release
Halifax, Nova Scotia
2019.07.10
Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the "Company") is pleased to announce that
it has closed its previously announced non-brokered private placement raising gross proceeds of $2,00 1,500 (the
“Offering”). Erdene’s management, directors and employees subscribed for 8% of the Offering.
Pursuant to the Offering, Erdene has sold 10,007,500 units of the Company (the “Units”) at a price of $0.20 per Unit.
Each Unit consists of one common share and one-half (½) of one common share purchase warrant (the “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. 30 per share. Erdene paid finder’s fees in the aggregate of $ 35,760 and issued 108,800 finder’s
warrants in connection with the Offering. The finder's warrants are exerc isable on the same terms as the unit
Warrants.
Proceeds of the Offering will be used to fund completion of the independent Pre-Feasibility Study (“PFS”) of the
Company's Khundii Gold Project (the “Project”), mining license applications for the Project’s properties, acquisition
and exploration, including step-out holes to test continuity of the Bayan Khundii extension identified in Q2 -2019,
and for general working capital purposes.
Erdene launched the PFS for the Khundii Gold Project in March 2019. Managed by Tetra-Tech, Inc., with support from
Sustainability East Asia LLC for Environmental and Social Impact studies, and Blue Coast Laboratories, for
Metallurgical analysis. Results of the PFS are scheduled to be announced in late Q3-2019.
Results from Erdene’s Q2-2019 drill program (see news release dated May 13, 2019), including the intersection of 112
metres grading 5.9 g/t gold, are amongst the strongest encountered at the Bayan Khundii project and are expected
to contribute positively to the PFS. Erdene intends to use a portion of the proceeds of the Offering for step-out
drilling including follow-up on a newly emerging zone of gold mineralization in southern Bayan Khundii, where Q2-
2019 drilling intersected 51.9 g/t gold over one metre.
Securities issued under the Offering are subject to a four month hold period from the closing date of the Offering.
Background on the Khundii Gold Project Development
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. The Company has been the leader in exploration in southwest
Mongolia over the past decade and is responsible for the discovery of the Khundii Gold District comprised of multiple
high-grade gold and gold/base metal prospects, two of which are being considered for development: the 100% -
owned Bayan Khundii and Altan Nar projects. Together, these deposits comprise the Khundii Gold Project.
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The Company delivered the Project’s maiden mineral resource estimate in Q3 2018 with a combined Measured and
Indicated resource of 751,000 ounces (“oz”) gold within 10.1 million tonnes (“Mt”) at an average grade of 2.3 g/t gold
(Table 1). This was followed by a Preliminary Economic Assessment dated February 4, 2019 (“PEA”) which returned
an after-tax Net Present Value of US$99 million, based on a 5% discount rate and a US$1,200/oz gold price, and an
Internal Rate of Return of 56%. The initial development has a life of mine head grade of 3.42 g/t gold with an average
annual gold production of 51,200 oz over an eight - year mine life. Based on the potential for additional discovery
and expansion on the current license areas, the planned development is considered as a foundation for growth.
Table 1 – Khundii Gold Project Resources
Cut-off Grade Resource Classification Quantity (Mt) Grade (Au g/t) Gold (oz)
Recommended(1) Measured 1.4 3.6 161,000
Indicated 8.7 2.1 590,000
Measured + Indicated 10.1 2.3 751,000
Inferred 5.2 1.8 291,000
(1) RPM Global recommended cut-off grade for Bayan Khundii is 0.6 g/t gold and Altan Nar is 0.7 g/t AuEq in pit and 1.4 g/t AuEq below the same pit shell.
The PEA is by nature, a preliminary economic study, based in part on Inferred Resources. Inferred Resourc es are
considered too speculative geologically to have the economic considerations applied to them that would enable
them to be categorized as mineral reserves which is required for a prefeasibility or feasibility study. Mineral
resources that are not mineral reserves do not have demonstrated economic viability and there is no certainty that
the PEA will be realized. The PEA, entitled “NI 43-101 Technical Report for the Preliminary Economic Assessment of
the Khundii Gold Project”, is available on SEDAR under Erdene’s profile.
Peter Dalton, P.Geo. (Nova Scotia), Senior Geologist for Erdene, is a Qualified Person as that term is defined in
National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.
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. Further information is available at www.erdene.com. Important information
may be disseminated exclusively via the website; investors should consult the site to access this information.
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward -looking statements within the
meaning of applicable securities laws. F orward-looking statements may include estimates, plans, expectations,
opinions, forecasts, projections, guidance or other statements that are not statements of fact, including statements
concerning the anticipated size and closing date of the Private Place ment, the intended use of proceeds from the
Private Placement, and the expected impact of drilling results on the PFS . 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 a number
of 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
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financing and general economic, market or bus iness 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
Robert Jenkins, CFO
Phone: (902) 423-6419
Email: [email protected]
Twitter: https://twitter.com/ErdeneRes
Facebook: https://www.facebook.com/ErdeneResource
LinkedIn: https://www.linkedin.com/company/erdene-resource-development-corp-/
YouTube: https://www.youtube.com/channel/UCILs5s9j3SLmya9vo2-KXoA