Erdene Resource Development Corp intends to issue, by way of a non-brokered private placement, up to 4,062,500 units for gross proceeds of up to $650,000. Each unit will consist of one common share and one-half of one common share purchase warrant, with each whole common share purchase warrant entitling the holder to purchase one common share of the company at a price of $0.24 for a 24 month period from the closing date.
Net proceeds of the private placement will be used for exploration of the company’s metal projects in Mongolia, including drilling at the Altan Nar gold-polymetallic project, which will commence in late April. This placement is expected to close on or before May 2.
The drilling program will include 10 drill holes totalling around 1000 metres. It will test continuity of high priority targets, some of which have yet to be drill tested.
Erdene field crews were mobilized to site the first week of April. Detailed surface work is under way, including higher density geochemical sampling, mapping, and an expanded induced polarization survey. This work will provide a greater understanding of the extent of the multiple mineralized structures identified to date and provide a stronger base for designing a more extensive follow-up resource delineation drill program.
Targets included in the drill program will be the Discovery Zone, Union North, Union South, Maggie, Northbow and Southbow.
Earlier this month the company closed its non-brokered private placement financing with the issuance of 2 million shares to Teck Resources for gross proceeds of $350,000. All securities issued pursuant to this private placement are subject to a four month hold period. This fulfils Teck’s 2014 equity investment obligation pursuant to the strategic alliance between Erdene and Teck announced by Erdene on April 11, 2013.