HALIFAX, NOVA SCOTIA, Dec 06, 2011 (MARKETWIRE via COMTEX) -- Erdene Resource Development Corp.CA:ERD -3.66% ("Erdene" or "Company"), is pleased to announce it has completed the private placement financing announced on November 16, 2011, led by Mongolian International Capital Corporation ("MICC"). Total proceeds of the private placement were $2,191,814 resulting in the issuance of 5,479,524 shares at $0.40 per share with net proceeds to the Company of $2,084,305 after total commissions paid to MICC of $107,509 pursuant to the offering.
All securities issued are subject to a hold period of four months and one day from the date of issuance. On November 28, 2011 the Company announced a partial closing pursuant to this offering of $1,715,000 and issued 4,287,500 shares at $0.40 per share.
Proceeds of the private placement will be used to fund exploration of the Company's projects in Mongolia and for working capital. Exploration expenditures will primarily be directed to the Altan Nar epithermal gold project, where drilling is underway. For more details on the Altan Nar project please visit Erdene's website at www.erdene.com to view the "Altan Nar Presentation" and recent core photos of sulphide-bearing epithermal quartz veins from TND-16 and TND-18, located 530 metres and 300 metres northeast of discovery hole TND-09, respectively. These documents are available under the Featured Items section on the homepage.
About MICC
MICC is the oldest and leading full service investment bank in Mongolia, providing investment banking, equity research, securities underwriting, and brokerage services to Mongolian and international clients. Established in 2005, MICC is an experienced financial advisor to mining and mining services companies in Mongolia, and has managed initial public offerings and private placements for several Mongolia-focused resource companies on the Australian Stock Exchange, the Hong Kong Stock Exchange, and the Toronto Stock Exchange. MICC is regulated by the Financial Regulatory Commission of Mongolia and is a member of the Mongolian Stock Exchange.
About Erdene
Erdene Resource Development Corp. is a diversified resource company with multiple projects in Mongolia, Canada, and the USA, at various stages of development, from exploration to production; all projects are focused on high-growth commodities. These include a 25% interest in a large, high energy, coking and thermal coal resource located on the Atlantic Ocean in Eastern Canada partnered with Xstrata Coal. In Mongolia, Erdene's management have over 14 years of experience in the country's resource sector. A dedicated technical and management team has assembled a strong portfolio of molybdenum-copper, copper-gold, and coal projects throughout the country. These projects, and our in-country experience, provide the Company with a unique opportunity to participate in this period of unprecedented economic growth in Mongolia. This growth is fuelled by the discovery and development of a number of World-class mineral projects that are transforming the country into one of Asia's natural resource capitals.
Erdene has a current working capital position, including net proceeds of this offering, of $4.3 million, including that of its controlled subsidiary Advanced Primary Minerals Corp., with 95,802,901 common shares issued and outstanding and a fully diluted position of 103,410,901 common shares.
Qualified Person
J.C. (Chris) Cowan, P. Eng. (Ontario) 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. Sample analyses have been carried out at SGS Laboratory in Ulaanbaatar, Mongolia. In addition to internal checks by SGS Laboratory, the company incorporates a QA/QC sample protocol utilizing prepared standards, blanks and duplicates.
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 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 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
Contacts:
Erdene Resource Development Corp.
Peter C. Akerley, President and CEO
Ken W. MacDonald
Vice President Business Strategy and CFO
info@erdene.com
www.erdene.com
Source:Marketwatch.com
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