Erdene Completes Repurchase of Sandstorm Gold’s Khundii Gold Project Royalty
Erdene Completes Repurchase of Sandstorm Gold’s Khundii Gold Project
Royalty
Halifax, Nova Scotia – April 15, 2019 – Erdene Resource Development Corp. (TSX:ERD ;
MSE:ERDN) ("Erdene" or the "Company") is pleased to announce the closing of the repurchase of
a 1% net smelter return (“NSR”) royalty from Sandstorm Gold Limited (“Sandstorm”) on its Khundii
Gold Project in southwest Mongolia on April 12, 2019 for C$1.2 million.
“Completing this repurchase is accretive for shareholders as the present value of royalty payments
implied by the Preliminary Economic Assessment are well in excess of the pur chase price ,” said
Peter Akerley, Erdene’s President and CEO . “With the exploration potential of the Khundii Gold
Project license areas, which we are continuing to evaluate as part of our ongoing 2019 exploration
program, the benefits of repurchasing could prove even greater.”
As announced on April 21, 2016, Erdene completed a transaction granting Sandstorm a 2% NSR
royalty on a select area that include d the Khundii Gold Project as part of a C$2.5 million financing
transaction. This transaction provided Erdene with a three-year option to buy back 50% of the 2%
NSR royalty for C$1.2 million. Erdene funded this repurchase from cash on hand.
Review of 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 (the “Project”).
The Company delivered the Project’s maiden mineral resource estimate in Q3 2018 with a Measured
and Indicated (“M&I”) resource of 751,000 ounces (“oz”) gold at an average grade of 2.3 g/t gold
and an Inferred resource of 291,000 o z gold at an average grade of 1.8 g/t gold (cut-off grade of 0.7
g/t gold). This was followed by a National Instrument 43 -101 Standards of Disclosure for Mineral
Projects (“NI 4 3-101”) P reliminary Economic Assessment in December 2018 which returned an
after-tax Net Present Value at a 5% discount rate (“NPV5%”) and a US$1,200/oz gold price of
US$99 million and Internal Rate of Return (“IRR”) of 56%. The initial development has a l ife of
mine head grade of 3.42 g/t gold with an average annual gold production of 51,200 o z over an eight-
year mine life. Based on the potential for additional discovery and expansion on the current licen se
areas the planned development is considered as a foundation for growth.
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. 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 gi ve 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 wh at
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 eco nomic, market or business 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
Ken W. MacDonald, Vice President and CFO
Phone: (902) 423-6419
E-mail: [email protected]
Website: www.erdene.com
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