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Erdene Announces Private Placement to Complete Khundii Gold Project Pre-Feasibility Study and Launch Step-Out Drill Program
HALIFAX, Nova Scotia, June 12, 2019 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the "Company") is pleased to announce
About this update from Erdene Resource Development Corporation
[{"type":"text","content":" HALIFAX, Nova Scotia, June 12, 2019 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) (\"Erdene\" or the \"Company\") is pleased to announce that it intends to issue, by way of a non-brokered private placement, up to 10,000,000 units of the Company (the “Units”) at a price of $0.20 per Unit (the “Private Placement”), for gross proceeds of up to $2,000,000. Each Unit will consist of one common share and one-half (½) of one common share purchase warrant (each whole warrant, a “Warrant”). Warrants are exercisable by the holder into one common share of the Company within two years of the closing date, at a price of $0.30. Proceeds of the Private Placement will be used to fund completion of the independent Pre-Feasibility Study (“PFS”) of the Company's Khundii Gold Project (the “Project”), mining license applications for the Project’s properties, acquisition and exploration, including step-out holes to test continuity of the Bayan Khundii extension identified in Q2-2019, and for general working capital purposes. Erdene launched the PFS for the Khundii Gold Project in March 2019. Managed by Tetra-Tech, Inc., with support from Sustainability East Asia LLC for Environmental and Social Impact studies, and Blue Coast Laboratories, for Metallurgical analysis, results of the PFS are scheduled to be announced in late Q3-2019. Results from Erdene’s Q2-2019 drill program (see news release dated May 13, 2019), including the intersection of 112 metres grading 5.9 g/t gold, are amongst the strongest encountered at the Bayan Khundii project and are expected to contribute positively to the PFS. Erdene intends to use a portion of the proceeds of the Private Placement for step-out drilling including follow-up on a newly emerging zone of gold mineralization in southern Bayan Khundii, where Q2-2019 drilling intersected 51.9 g/t gold over one metre. The Private Placement is expected to close on or about June 26, 2019 and is subject to the Company receiving all necessary regulatory approvals, including approval of the Toronto Stock Exchange. Securities issued under the Private Placement will be subject to a four month hold period which will expire four months plus one day from the closing date of the Private Placement. Review of the Khundii Gold Project Development Erdene’s deposits are located in the Edren Terrane, within ...