Erdene Resource Development Corp. is looking to raise a total of C$4.4 million after receiving regulatory approval for a secondary listing on the Mongolian Stock Exchange.
The company said May 31 that it will complete an underwritten financing of 4 million shares with Mongolian residents, priced at 34 cents apiece, for around C$1.4 million in proceeds.
Erdene will also complete a private placement of 8 million units at 38 cents apiece to raise a total of C$3.0 million. Each unit will consist of 1 share and a share purchase warrant, while each whole warrant is exercisable to acquire an additional share for 60 cents for 30 months from closing.
The Canada-based miner will use the proceeds to fully fund its operations into 2019 and to advance its Altan Nar and Bayan Khundii gold projects in Mongolia. The funds will also be used to explore and develop the company's other gold properties in the country's southwest, as well as for working capital and general corporate purposes.
Erdene will conduct drilling focused on Bayan Khundii expansion targets in June, following which it plans to release a resource estimate for both Bayan Khundii and Altan Nar in the third quarter.
The company's shares are up over 6% on the Toronto Stock Exchange around noon ET.
