- Erdene Resource Development (ERD) has raised approximately C$20 million in a private placement, with a lead investment from Eric Sprott
- The company issued a total of 33.3 million subscription receipts at a price of 45 cents, all of which were acquired by Eric
- Erdene also issued 11.1 million units at a price of 45 cents each, consisting of one common share in the company and one common share purchase warrant
- The proceeds will be used to expand the company’s high-grade resources in the Khundii Gold District in Mongolia
- Erdene Resource Development (ERD) is currently steady at 56 cents per share
Erdene Resource Development (ERD) has raised approximately C$20 million in a private placement, with a lead investment from Eric Sprott.
Under the terms of the placement, the Halifax-based company issued a total of 33,333,333 subscription receipts at a price of $0.45, all of which were acquired by Eric for roughly $15 million.
Erdene also issued 11,111,108 units at a price of $0.45 each, consisting of one common share in the company and one common share purchase warrant. Each warrant will entitle the holder to acquire an additional common share at a price of $0.60, exercisable over a period of two years from the date of issuance.
Prior to the placement, Eric did not hold a position in Erdene. However, with the offering now complete, he beneficially owns 33,333,333 common shares and 33,333,333 warrants, representing approximately 24.6 per cent of the company’s issued and outstanding securities on a partially-diluted basis.
In connection with the placement, Erdene will pay a finder’s fee to certain parties worth $907,625 in cash and 400,611 finder’s warrants.
Peter Akerley, President and CEO of Erdene Resource Development, said he is very pleased to have completed the financing with the support of Eric.
“Funds will be focused on expanding high-grade resources in our Khundii Gold District and allow us to initiate early works at the Bayan Khundii Gold Project, following the recent announcement of Bankable Feasibility Study results,” he added.
Located in southwest Mongolia, the Khundii Gold District hosts three mining licenses and three exploration licenses, including the high-grade Bayan Khundii Gold Project which has been targeted for first gold production in early 2022.
Erdene Resource Development (ERD) is currently steady at 56 cents per share at 10:45am EDT.