Erdene Provides Corporate Finance Update
TSX: ERD | MSE: ERDN
www.erdene.com [email protected]
ERDENE PROVIDES CORPORATE FINANCE UPDATE
Press Release
Halifax, Nova Scotia
2024.12.10
Erdene Resource Development Corp. (TSX:ERD | MSE:ERDN) ("Erdene" or the "Company")
is pleased to announce the execution of an up to US$50 million working capital facility with Trade
and Development Bank of Mongolia (“TDB”) by Erdene Mongol LLC (“EM”) to fund commissioning
and ramp up of the high-grade, open-pit Bayan Khundii Gold Project (“Bayan Khundii”, “BK” or
"Project”), under development with Mongolian Mining Corporation (“MMC”). Additionally, the
Company is pleased to provide an update on recent warrant exercises.
Peter Akerley, Erdene’s President and CEO stated, “We are very pleased to announce the
working capital financing from TDB, one of Mongolia’s leading financial institutions. Proceeds will
fund pre-mining and commissioning for the Bayan Khundii Gold Project as we work toward first
gold in mid-2025 and commercial production in Q3 2025. This financing will provide liquidity
during ramp up. We have begun to close in the process plant and complete critical non-process
infrastructure buildings, in advance of mechanical and electrical works completion in Q1 and
commissioning beginning in Q2 2025. In addition, the 13,700 metre grade control drilling program
and the first phase of the project’s integrated waste facility construction, supporting year one
mining, are on track to be complete this month positioning the project to commence pre-
production mining in Q2 2025.”
Mr. Akerley continued, “We have also received commitments for the exercise of approximately
C$5 million of warrants, including from our cornerstone investor, Mr. Eric Sprott. These proceeds
will allow the Company to advance other projects including our Zuun Mod project, one of Asia’s
largest undeveloped molybdenum resources.”
Bayan Khundii Working Capital Facility
Erdene Mongol LLC (“EM”) has executed financing documents with TDB for a working capital
facility to commission the Bayan Khundii Gold Project. The up to US$50 million facility has a term
of 24 months, and will be repayable through six equal payments during the final six months of the
loan term. The facility will bear interest at a rate of 13.3% per annum and is secured by Bayan
Khundii’s process plant assets. See Erdene press release dated January 29, 2024 for details on
the Erdene-MMC Strategic Alliance: “Erdene Commences Construction at the High-Grade Bayan
Khundii Gold Project and Finalizes Strategic Alliance with Mongolian Mining Corporation”.
December 2024 Warrant Exercises
Erdene is pleased to announce that the Company has received commitments to exercise all
common share purchase warrants with an expiry of December 21, 2024, including those held by
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him.
Pursuant to these commitments, the Company has issued 6,689,697 shares and will issue a
further 6,370,755 shares by December 21, 2024, for aggregate gross proceeds of $5,224,181.
Proceeds will be used to advance projects outside the EM area of interest, including the
Company’s Zuun Mod molybdenum-copper project and for general corporate purposes. See
Erdene press release dated December 22, 2022 for details: “Erdene completes $7M Private
Placement Led by Investment from Eric Sprott”.
TSX: ERD | MSE: ERDN
www.erdene.com [email protected]
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 three mining licenses a nd an
exploration license in Southwest Mongolia, where exploration success has led to the discovery
and definition of the Khundii Minerals 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, including statements concerning the
timing of production at Bayan Khundii and expectations as to the size and impact of Bayan Khundii
and other mineral projects in Mongolia, 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
substantially from what Erdene currently foresees. Factors that could cause actual results to differ
materially 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 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