Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) told investors it made significant progress at its Bayan Khundii gold project in Mongolia during the third quarter, notably filing an updated Feasibility Study for the project in September.
“The third quarter of 2023 was a transformative period for Erdene as we began early construction works in earnest at our Bayan Khundii gold project,” Erdene CEO Peter Akerley said in a statement.
“Approximately 80% of the early works scope is now complete, with temporary facilities erected, aggregate crushing and concrete batch plant established, and process plant civils well progressed.”
Akerley noted that after the quarter ended, Erdene received the final $30 million in funding from the Mongolian Mining Corporation under its strategic alliance.
“Concurrently, international financial institutions are conducting due diligence on the updated Bayan Khundii Feasibility Study delivered in 3Q,” he said. “Financial close is anticipated in late 2023 which will position Erdene to reach a formal construction decision.”
For 3Q, Erdene reported a net loss of $1.2 million, down from a net loss of $2 million in the year-ago quarter.
Its exploration and evaluation expenses were $15.4 million, up from $3.7 million in 3Q 2022, due to the commencement of early works at the Bayan Khundii project.
It narrowed its corporate and administrative expenses year-over-year from $870,287 to $600,595 due to the timing of annual performance bonuses, cost-of-living adjustments, and annual performance grants.
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