Erdene Resource Development Corp. on Jan. 31 said it increased the size of its recently announced bought-deal financing to C$12 million from C$10 million previously.

Under the revised deal, the underwriters, led by Paradigm Capital Inc., have agreed to acquire the company's 15,584,415 common shares priced at 77 Canadian cents apiece.

The underwriters were also granted an overallotment option allowing them to purchase an additional 15% of the offering for a 48-hour period before the offering's closing.

The offer is expected to close by Feb. 23, subject to certain conditions, including approval from the Toronto Stock Exchange.

Erdene will use the proceeds for the development of its Bayan Khundii and Altan Nar gold projects in Mongolia.

Proceeds would also be earmarked for further exploration of other gold properties in southwest Mongolia and for working capital and general corporate purposes.