Erdene Completes Private Placement Financing

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
                    (902) 423-6419      
        info@erdene.com
 
www.erdene.com            
        

Source:Marketwatch.com
Share:

0 comments:

Post a Comment

Facebook page

Powered by Blogger.

Categories

Advertising in Mongolia An Culture Editorial of the Mongolianviews education Environmental protection Famous Mongolians Foreigners in Mongolia Inner Mongolia Ivanhoe Mines Mongolia agriculture Mongolia analysis Mongolia and Australia Mongolia and Belorussia Mongolia and Cambodia Mongolia and Canada Mongolia and central Asia Mongolia and China Mongolia and Cuba Mongolia and EU Mongolia and Germany Mongolia and Hongkong Mongolia and Hungary Mongolia and India Mongolia and Inner Mongolia Mongolia and Iran Mongolia and Italy Mongolia and Japan Mongolia and Kazakhstan Mongolia and Korea Mongolia and Kuwait Mongolia and Malaysia Mongolia and Nato Mongolia and North Korean Mongolia and Poland Mongolia and Russia Mongolia and Singapore Mongolia and South Korea Mongolia and Taiwan Mongolia and the world Mongolia and Tibet Mongolia and Turkey Mongolia and UK Mongolia and Ukraine Mongolia and UN Mongolia and USA Mongolia and Vietnam Mongolia Banking Mongolia civic society Mongolia crime Mongolia diplomacy Mongolia Economy Mongolia Education Mongolia Energy Mongolia Finance Mongolia Health Mongolia History Mongolia holiday Mongolia in international media Mongolia Industries Mongolia Joke Mongolia law Mongolia LGBT Mongolia medical Mongolia military Mongolia Mining Mongolia Mining Developments Mongolia Mortgage Mongolia natural disaster Mongolia Petroleum Mongolia public announcements Mongolia railways Mongolia Religion Mongolia society Mongolia Sports Mongolia Stamp Mongolia telecommunication Mongolia tourism Mongolia Urbanization Mongolia Wild Life Mongolian Agriculture Mongolian Archeology Mongolian Food Mongolian Gay Mongolian Government news Mongolian History Mongolian Military Mongolian Mining Development Mongolian Movie Mongolian News Mongolian Parliament Mongolian Political news Mongolian Press Mongolian Songs Mongolian Women Mongolian Youth Mongolians abroad Moninfo Opinion Oyu Tolgoi Investment Agreement Photo news Press Release Rio Tinto Tavan Tolgoi coal mine Ulaanbaatar development Weird expatriates in Mongolia

Blog Archive

Followers

Live Traffic