Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) said its strategic alliance agreement with Mongolian Mining Corporation (MMC) for the development of its Bayan Khundii gold project in Mongolia has been amended.
The first two stages of the agreement have already been executed, with the third stage to see MMC invest a further US$30 million to provide equity capital for the project.
The company said that on August 30, Erdene and MMC amended the agreement to advance US$15 million of the US$30 million to continue early works in the form of a convertible note.
Then on October 12, 2023, the two companies again amended the agreement with MMC and on October 15, advanced the final US$15 million of the US$30 million third-stage payment to progress the project and secure customary approvals.
At the same time, Erdene said international financial institutions are concurrently conducting due diligence on the project’s updated Feasibility Study and are expected to provide debt financing.
The company expects that senior debt financing could make up as much as 65% of the total financing package, with closing anticipated in late 2023.
Erdene is a Canada-based resource company focused on the acquisition, exploration, and development of precious and base metals in underexplored and highly prospective Mongolia.
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