HALIFAX, NOVA SCOTIA--(Marketwired - Aug. 30, 2017) -
Note to editors: There are two maps associated with this press release.
Erdene Resource Development Corp. (TSX:ERD) ("Erdene" or "Company") is pleased to report the closing of its previously announced agreement (the "Agreement") to acquire a 51% interest in the Ulaan exploration license, adjacent to the Company's high-grade Bayan Khundii gold project, with the option to acquire up to 100%.
The Ulaan exploration license ("Ulaan" or the "Property"), located immediately west of the Company's 100%-owned Bayan Khundii gold project license, covers an area of approximately 1,780 hectares. The property hosts a very large, 3-kilometre diameter, intense alteration zone with characteristics thought to be related to a porphyry copper and epithermal gold system. Although the Property has no history of drilling or trenching, rock chip and stream sediment geochemical sampling has identified anomalous concentrations of gold, copper and molybdenum in the surrounding area, and recently completed geophysical surveys have produced a number of follow-up targets. Exploration programs are being formulated with work to commence this quarter. In addition to planned exploration at Ulaan, the Company continues with drilling programs at its neighboring, 100%-owned Bayan Khundii, Altan Nar and Altan Arrow gold projects.
Two plan maps of the Ulaan Property have been attached for reference:
Under the terms of the Agreement, Erdene has acquired 51% of the outstanding shares of Leader Exploration LLC ("Leader"), a private Mongolian company that currently owns the Property, from Erdenechuluun.Z and Erdenekhuyag.Z for US$750,000. Provided Erdene spends a minimum of US$600,000 on work expenditures on the Property over the next three years, it has the right to acquire the remaining 49% of the shares of Leader from Erdenechuluun.Z or, at Erdene's option, a portion of the Property, for the then fair market value of the Property or the portion to be acquired. Erdene may extend the option beyond three years by spending a minimum of US$100,000 per annum on work expenditures.
Erdene Resource Development Corp. (TSX:ERD) is a Canada-based resource company focused on the acquisition, exploration, and development of base and precious metals in underexplored and highly prospective Mongolia. The Company has four exploration licenses and a mining license in southwest Mongolia. Exploration success has led to the discovery and definition of several 100%-owned prospects and deposits including the Company's flagship and newly discovered, high-grade, near-surface Bayan Khundii gold project; the 5.6 kilometre long Altan Nar gold-polymetallic mineralized trend that is host to 18 targets; the Altan Arrow gold-silver prospect; the Khuvyn Khar copper-silver prospect; and the Zuun Mod molybdenum-copper deposit. For further information on the Company, please visit www.erdene.com. Erdene has 145,963,086 issued and outstanding common shares and a fully diluted position of 156,592,160 common shares.
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 many 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 is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE
Erdene Resource Development Corporation
Peter C. Akerley, President and CEO, or
Ken W. MacDonald, Vice President and CFO
email@example.com / www.erdene.com