HALIFAX, NOVA SCOTIA--(Marketwired - Nov 10, 2015) - Erdene Resource Development Corp. (ERD.TO) ("Erdene" or "Company"), is pleased to announce that it has raised a total of $1 million from its recently announced non-brokered private placement ("Private Placement") and from the exercise of warrants.
The Company completed the Private Placement announced on October 21, 2015 and accepted subscriptions for 6,864,327 units (Units") priced at $0.14 per Unit for gross proceeds of $961,000. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant, with each whole common share purchase warrant ("Warrant") entitling the holder to purchase one common share of the Company at a price of $0.18 for a twelve month period from the closing date. Aggregate finder's fees of $45,500 were paid and an aggregate of 325,000 finder's warrants, with an exercise price of $0.15 for a period of twelve months, were issued to certain parties in connection with the Private Placement. All securities issued pursuant to the Private Placement are subject to a four month hold period from the closing date.
Since announcing the Private Placement, the Company has also received subscriptions totaling $91,830 in connection with the exercise of warrants having an exercise price of $0.10 per share.
Proceeds of the Private Placement will be used to advance the Company's Bayan Khundii gold prospect (discovered Q2-2015) and the Altan Nar gold-polymetallic project, as well as for general working capital purposes. At Bayan Khundii, the Company commenced a maiden drill program on November 8, 2015 as follow-up to the results reported on October 5, 2015 that included 30 m of 2.70 g/t gold from Trench BKT-01 (click here to view the Company's latest news release on Bayan Khundii). At Altan Nar, work is expected to include additional metallurgical process test work, evaluations of the mining, engineering, transportation, and marketing options, exploration and development related programs, and work required for a mining licence application (click here to view the Company's latest news releases on Altan Nar).
Qualified Person
Michael MacDonald, P.Geo. (Nova Scotia), Director of Exploration for Erdene, is the 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. All samples have been assayed 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 and blanks.