Erdene Name
Change Approved at Annual and Special Meeting
May 29, 2008 - Halifax, Nova Scotia - Erdene Gold Inc. (TSX:ERD)
("Erdene"), a diversified minerals company with assets in Canada, the
U.S. and Mongolia, today announced that its shareholders have approved a name
change for the Company at its Annual and Special Meeting of the Shareholders
effective immediately. Erdene's new corporate name is "Erdene
Resource Development Corporation" which better reflects Erdene's current
operations and advanced-staged mineral projects.
"Given the recent successes and long-term plans we have for the
Donkin Coal and Zuun Mod Molybdenum projects, management feels that the name
Erdene Resource Development Corporation better depicts our company's strategic
direction," said Peter Akerley, President and CEO. "These
assets coupled with our strong pipeline of projects will enable us to deliver
long-term value for our shareholders."
Erdene's shareholders also approved a shareholder rights plan ("Rights
Plan") at the Company's annual meeting. The Rights Plan was adopted
by Erdene's board of directors to ensure the fair treatment of shareholders in
connection with any takeover offer for the Company. The Rights Plan is
not being adopted in response to any proposal to acquire control of the
Company. The Rights Plan will have an initial term of three
years.
Donkin Coal Project
Located in Nova Scotia, the Donkin Coal project is owned by the Donkin Coal
Alliance ("DCA"), a joint venture between Xstrata Coal Donkin Limited
(a subsidiary of Xstrata plc) (75%) and Erdene Gold Inc. (25%).
The DCA recently announced that it will commit to funding a feasibility study
of an Evaluation and Development Program ("Program") at the Donkin
Coal project. The Program is an interim step toward the construction of a
large scale underground longwall mining operation and will focus on gaining
better insight of the geological, geotechnical and mining conditions of the
proposed operation.
The feasibility study is expected to be complete by the end of 2008.
Zuun Mod Molybdenum Project
Owned entirely by Erdene, the Zuun Mod molybdenum project is located in
Mongolia within 200 kilometres of China's border.
Yesterday, Erdene announced that it received its first National Instrument
43-101 compliant resource for Zuun Mod, with 467 million metric tonnes of
Measured and Indicated Resources at an average grade of 0.044% Mo, at a cut-off
grade ("cog") of 0.03% Mo. This represents 453 million pounds
(Mlbs) of contained Mo metal. The deposit also contains 141 million
metric tonnes of Inferred Resources at an average grade of 0.039% Mo or an
additional 121 Mlbs of contained Mo metal.
An independent preliminary assessment study ("PAS") is currently
underway and a drill is on-site preparing for the start-up of an additional
drilling program at Zuun Mod. It is anticipated that a pre-feasibility
study will commence upon receipt of the PAS report in mid-2008 and will lead to
the identification of the best plan for development of the Zuun Mod molybdenum project.
About Erdene Resource Development Corporation
Erdene is a diversified resource development company with multiple projects at
various stages of development from exploration to production all focused on
high-growth commodities. The Corporation has a strong portfolio of
exploration properties in Mongolia where it has a strategic alliance with
Xstrata Coal to develop its coal properties and a strong focus on base metals
(copper and molybdenum), precious metals (gold) and energy (coal). Minarco-MineConsult,
of Sydney, Australia, has recently completed a NI 43-101 compliant independent
resource estimate for the Zuun Mod molybdenum project and is currently working
on a scoping study on the project. In addition, Erdene has near-term cash
flow opportunities in its North American assets, which include a 25% interest
in the Donkin Coal Alliance with Xstrata Coal, agreements with KaMin LLC
(formerly J.M. Huber Corporation) and Ready Mix USA as operators and developers
in the southeast U.S. for its kaolin clay and construction
aggregate projects, respectively. Erdene has a cash position of approximately
$6.45 million with 70,644,877 common shares issued and outstanding and a fully
diluted share position of 80,347,352 common shares
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 subject to change after that date.
For more information, please contact:
Peter C. Akerley, President and CEO
or
Ken W. MacDonald, Vice-President North America and CFO
Phone: (902) 423-6419
For additional information visit Erdene's website at www.erdene.com or contact
the company via email at info@erdene.com
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Erdene Gold Inc.
99 Wyse Road Suite 1480
Dartmouth, Nova Scotia, AB B3A4S5
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