Erdene Closes US$5 Million Mongolian Stock Exchange Offering
TSX: ERD | MSE: ERDN
www.erdene.com 1 [email protected]
ERDENE CLOSES US$5 MILLION MONGOLIAN STOCK EXCHANGE
OFFERING
Press Release
Halifax, Nova Scotia
2021.10.12
Erdene Resource Development Corporation (TSX: ERD | MSE: ERDN) (“Erdene” or the
“Company”) is pleased to announce the closure of an over-subscribed private placement
offering of Common Shares on the Mongolia Stock Exchange (”MSE”) for gross proceeds
of approximately US$5 million from 1,867 institutional and private Mongolian investors.
Quotes from the Company and the MSE
“We are very pleased to add to our substantial Mongolian investor base with the closure
of this MSE financing ,” said Peter Akerley, Erdene’s President and CEO . “During my
recent visit to Mongolia I met with many of our stakeholders. I would like to thank our long-
time shareholders for their continued support and welcome our new shareholders to a n
exciting period in Erdene’s growth . Funds from the offering will be used for construction
of our high-grade, open-pit Bayan Khundii Gold Project and to continue exploration in our
Khundii Gold District.”
“We would like to congratulate Erdene on its successful Mongolian Stock Exchange
offering,” said Altai Khangai, CEO of the MSE. “As the first Company to have cross-listed
on the Mongolian and Toronto Stock Exchanges, Erdene has demonstrated the important
role that local capital markets play in financing mineral developments in Mongolia.”
Offering Terms
Pursuant to the offering, the Company issued 17,484,662 common shares at a price of
MNT815 (C$0.36) per share for gross proceeds of approximately US$5 million. The
offering was led by BDSec SC JSC , with Mandal Capital Markets SC and Tavan Bogd
Capital SC acting as co-underwriters. The Common Shares were issued 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 offering. The offering was
oversubscribed by 46%, however, the Company limited the issuance to 17,484,662
shares, which were distributed to subscribers pro-rata.
Erdene intends to use the net proceeds of the offering for the continued development of
its 100%-owned Bayan Khundii Gold Project, the delineation of the recent Ulaan and Dark
Horse gold discoveries, additional exploration activities within the Khundii Gold District ,
and for working capital and general corporate purposes.
TSX: ERD | MSE: ERDN
www.erdene.com 2 [email protected]
About Erdene
Erdene Resource Development Corp. is a Canada-based resource company focused on
the acquisition, explorati on, and development of precious and base metals in
underexplored and highly prospective Mongolia. The Company has interests in three
mining licenses and two exploration licenses 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 the Mongolian 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. 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 cautio ns 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 mater ially from those
in forward-looking statements include the ability to obtain required third party approvals,
market prices, exploitation, and exploration results, continued availability of capital and
financing and general economic, market or business cond itions. 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 oblig ation 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-/