Business
Erdene Announces Planned Acquisition of Kaoclay
Erdene Announces Planned Acquisition of Kaoclay.
About this update from Erdene Resource Development Corporation
[{"type":"text","content":"\n\n\n\n\nIncludes 20% Interest in Nova Scotia's Donkin Coal Project\n\nConference Call at 9:30 am ET Today\n\nHALIFAX, Feb. 21 /CNW/ - Erdene Gold Inc. (TSX:ERD) today announced it\nhas reached an agreement with Kaoclay Resources Inc. (\"Kaoclay\") whereby\nErdene will acquire all of the outstanding shares of Kaoclay in exchange for\nshares and warrants of Erdene. Kaoclay is a Nova Scotia-based private company\ninvolved in energy and industrial mineral projects in North America with three\nadvanced-stage projects. These projects include a 20 per cent interest in the\nexploration and development of the Donkin coal project in Nova Scotia with\nXstrata Coal Canada Limited (\"Xstrata\"), a wholly owned subsidiary of Xstrata\nCoal plc., control of primary kaolin resources being commercially produced by\nJ.M. Huber Corporation in Georgia and a royalty interest in a major aggregate\ndevelopment in Georgia to supply the southeast U.S. market. All figures are in\nCanadian dollars unless otherwise specified.\n\"This acquisition is an ideal combination of strengths, adding Kaoclay's\nstrong potential for near-term cash flow opportunities in North America to\nErdene's high potential mineral and energy properties in Mongolia,\" said Peter\nAkerley, President and CEO of Erdene Gold Inc. \"The Kaoclay assets have\nsignificant upside potential and are well managed by internationally\nrecognized partners who are leaders in their respective fields. We believe\nadding assets of this magnitude to our portfolio creates a much stronger\ncompany and will create significant long-term value for our shareholders.\"\n\"The board of Kaoclay sees this transaction as a strong positive for our\nshareholders,\" said Philip Webster, Chairman of Kaoclay Resources Inc. \"We are\nvery familiar with the strength of Erdene's management team, which has\naccomplished a great deal in the last year. We believe they have the\nexperience and ability to realize the value of the Kaoclay assets and our\nboard was unanimous in recommending this transaction to our shareholders. This\ngives our shareholders ownership in a Nova Scotia-based, TSX-listed company\nwith strong international relationships and an exciting portfolio of\nexploration properties.\"\nErdene will continue to focus on its mineral opportunities in Mongolia,\nwhere it has 68 exploration licences on four milli...