Erdene Closes Oversubscribed $13.8 Million Bought Deal Financing
ERDENE RESOURCE DEVELOPMENT CORP.
Erdene Closes Oversubscribed $13.8 Million Bought Deal Financing
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITES DESCRIBED HEREIN.
Halifax, Nova Scotia – February 23 , 2017 – Erdene Resource Development Corp. (TSX:ERD)
("Erdene" or "Company") is pleased to announce the closing of its previously announced bought deal
financing for gross proceeds to the Company of C$13.8 million (the “Offering”). The Offering was led
by Paradigm Capital Inc. , with a syndicate including Canaccord Genuity Corp. (collectively, the
“Underwriters”).
The Company issued a n aggregate of 17,922,077 common shares (“Shares”) at a price of C$0.77 per
Share, including the full exercise of the Underwriters’ 15% over -allotment option. The Offering was
oversubscribed with participation from multiple institutional investors from Canada and abroad.
In consideration for their services, the Underwriters receive d a cash commission of $828,000
representing 6% of the gross proceeds of the Offering and 1,075,324 compensation warrants (the
“Compensation Warrants”) representing 6% of the Shares issued pursuant to the Offering . Each
Compensation Warrant is exercisable for a period of 24 months from closing and entitles the holder to
purchase one Share for $1.20 per share.
All Shares issued in connection with the Offering are subject to a four -month hold period expiring June
24, 2017. The Company intends to use the net proceeds of the Offering to advance its 100% -owned,
high-grade Bayan Khundii and Altan Nar Gold Projects , and to furt her explore and develop the
Company's other gold properties in southwest Mongolia, as well as for working capital and general
corporate purposes . A n approximate 20,000 metre drill program at Bayan Khundii i s expected to
commence in April 2017.
“We are ex tremely pleased with the strong interest shown in the financing which was significantly
oversubscribed. It is our pleasure to welcome these high caliber shareholders into Erdene”, said Peter
Akerley, Erdene’s President and CEO. “We now have the financial capacity to significantly advance our
promising gold projects in southwest Mongolia.”
The securities described herein have not been, and wil l not be, registered under the United States
Securities A ct of 1933, as amended (the “U.S Securities Act ”), or any state securities laws, and
accordingly, may not be offered or sold within the United States except in compliance with the
registration requirements of the U .S. Securities Act and applicable state securities requirements or
pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation
to buy any securities in any jurisdiction.
About Erdene
Erdene Resource Development Corp. is a Canada -based resource company focused on the acquisition,
exploration, and development of precious and base metal prospects in underexplored and highly
prospective southwest Mongolia. Exploration success has led to th e discovery and definition of several
100%-owned prospects and deposits including the Company’s flagship and newly discovered, high -
grade, near -surface Bayan Khundii gold project ; the 5.6 km long Altan Nar gold -polymetallic
mineralized trend that is host t o 18 targets; the Altan Arrow gold -silver prospect and the Zuun Mod
molybdenum-copper deposit. In addition to the above properties, the Company has an Alliance with
Teck Resources Limited on regional copper -gold exploration in the prospective Trans Altay r egion of
southwest Mongolia. For further information on the Company, please visit www.erdene.com. Erdene
has a working capital position of approximately $13.3 million , 144,847,108 issued and outstanding
common shares and a fully diluted position of 153,428,682 common shares, after giving effect to the
Offering.
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 a number of factors, most of which are beyond its
control, and that future events and results may vary substanti ally from w hat 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 entiret y by this cautionary statement. The information contained herein is
stated as of the current date and is subject to change after that d ate. 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