trending Market Intelligence /marketintelligence/en/news-insights/trending/utxw0MvYN3fmW45ehWB-tg2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *

* Required

In This List

Erdene secures C$8M funding for Khundii gold project in Mongolia

Mining Exploration Insights: Dip in gold drilling weighs on results

Mining Exploration Insights: Is the exploration sector back on recovery?

State of the Market: Mining Q2-2019

Metals & Mining

Global Mining Industry Outlook - What Are the Expectations?


Erdene secures C$8M funding for Khundii gold project in Mongolia

Erdene Resource Development Corp. secured an C$8 million financing package led by the European Bank for Reconstruction and Development to develop the Khundii gold project in Mongolia.

The funds will be used to support a feasibility study and a front-end engineering design, for exploration and acquisitions to add resources, and for general working capital.

The company said Oct. 15 that it also entered into a definitive agreement with the bank for a US$5.0 million convertible loan that has an interest rate of 10% per annum and will mature in 36 months.

The loan, which has a conversion price of 20 Canadian cents per share, can be prepaid 24 months from the date of the initial advance, delivery of a National Instrument 43-101-compliant bankable feasibility study, or a change of control of Erdene, whichever happens first.

In addition, Erdene plans to raise C$1.6 million through a private placement of 8 million units at 20 cents apiece. Each unit will consist of one share and one-half of a warrant exercisable at 30 cents apiece for two years. Closing is expected by Oct. 25.

A December 2018 preliminary economic assessment on the project generated a posttax net present value, discounted at 5%, of US$99 million, a 56% internal rate of return and a two-year payback period.