saidApril 11 that it has signed financing agreements with Sandstorm Gold Ltd. for the latter to provide C$2.5 millionworth of funds for the former to advance exploration and development programs onits gold projects in southwestern Mongolia.
Sandstorm willprovide cash consideration of C$1 million through a private placement of 5,000,000common shares of Erdene at 20 cents per share.
The fund willfocus specifically on Erdene's BayanKhundii gold project.
Sandstorm willalso provide consideration for C$1.5 million worth of common shares for the purchaseof a 2% net smelter returns royalty on Erdene's Bayan Khundii and gold-polymetallic projects.
Erdene has athree-year option to buy back 50% of the NSR for C$1.2 million under the agreement.
The agreementalso requires Sandstorm to hold the Erdene shares for a minimum of 18 months.