Erdene Announces $15 Million Private Placement
June 2, 2008 - Halifax, Nova Scotia - Erdene Resource Development Corp. ("Erdene") (TSX:ERD) today announced it has entered into an agreement whereby Toll Cross Securities Inc. and National Bank Financial Inc. have agreed to act as co-lead agents (the "Agents" ), with respect to a best efforts financing of up to 15 million common shares of Erdene at $1.00 per share, for gross proceeds to Erdene of $15,000,000 ("Offering").
Acadian Securities Inc., Beacon Securities Limited and Citadel Securities Inc are members of the selling group, together with the Agents. The closing is expected to occur on or about June 19, 2008 ("Closing").
Erdene also granted an over-allotment option to acquire up to 5 million common shares at the selling price, exercisable until the Closing. Erdene has agreed to pay the Agents a cash commission equal to 6% of the gross proceeds of the Offering.
The net proceeds of the Offering and the proceeds of the over-allotment option, if any, will be used for mineral exploration and development activities and for general corporate purposes.
The Offering is subject to receipt of all necessary approvals, including regulatory and stock exchange approvals. All of the shares issued in connection with the Offering will be subject to a four month hold period from the date of issue.
About Erdene Resource Development Corp.
Erdene (formerly Erdene Gold Inc.) is a diversified resource development company with multiple projects at various stages of development from exploration to production all focused on high-growth commodities. The Corporation has a strong portfolio of exploration properties in Mongolia where it has a strategic alliance with Xstrata Coal to develop its coal properties and a strong focus on base metals (copper and molybdenum), precious metals (gold) and energy (coal). Minarco-MineConsult, of Sydney, Australia, has recently completed a National Instrument 43-101 compliant independent resource estimate for the Zuun Mod molybdenum project and is currently working on a scoping study on the project. In addition, Erdene has near-term cash flow opportunities in its North American assets, which include a 25% interest in the Donkin Coal Alliance with Xstrata Coal, agreements with KaMin LLC (formerly J.M. Huber Corporation) and Ready Mix USA as operators and developers in the southeast U.S.
for its kaolin clay and construction aggregate projects, respectively. Erdene has a cash position of approximately $6.4 million with 70,644,877 common shares issued and outstanding and a fully diluted share position of 80,447,352 common shares.
Forward-Looking Statements
Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The
forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and subject to change after that date.
For more information, please contact:
Peter C. Akerley, President and CEO
or
Ken W. MacDonald, Vice-President Business Development and CFO
Phone: (902) 423-6419
For additional information visit Erdene's website at www.erdene.com or contact the Corporation via email at info@erdene.com
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Erdene Gold Inc.
99 Wyse Road Suite 1480
Dartmouth, Nova Scotia, AB B3A4S5
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