{"id":1197865,"date":"2020-07-24T12:45:59","date_gmt":"2020-07-24T17:45:59","guid":{"rendered":"https:\/\/www.mining.com\/?p=1030789"},"modified":"2020-07-24T12:45:59","modified_gmt":"2020-07-24T17:45:59","slug":"erdene-shares-jump-on-sprott-investment","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1197865","title":{"rendered":"Erdene shares jump on Sprott investment"},"content":{"rendered":"

Mongolia-focused gold explorer Erdene Resource Development (TSX: ERD) is set to receive a C$15 million investment from Canadian mining billionaire Eric Sprott as part of its recently announced C$20 million private placement<\/a>.<\/p>\n

The private placement consists of the sale of approximately 33.33 million subscription receipts at a price of C$0.45 each to an entity controlled by Sprott, and the concurrent sale of up to 11.11 million units of the company, also at a price of C$0.45 each. Sprott currently does not own any securities of the company.<\/p>\n

Each subscription receipt is convertible into one unit, each consisting of one common share of the company and one warrant, with each warrant exercisable into one common share at a price of C$0.60 per share within two years of the closing date.<\/p>\n

\n
\n

The Bayan Khundii gold project is targeted for first production in early 2022<\/p>\n<\/blockquote>\n<\/figure>\n

Erdene will use proceeds of the private placement to advance its flagship Bayan Khundii gold project<\/a>, which is targeted for first production by early 2022. The project is located in southwest Mongolia, where the company has interests in three mining licenses and three exploration licenses covering a total of 2,309 hectares in the highly prospective Khundii gold district. <\/p>\n

A prefeasibility study (PFS) on the Bayan Khundii deposit published in October 2019 showed a significant increase in resources over past estimates, with 520,700 ounces of gold in the measured and indicated category at an average grade of 3.16\u00a0g\/t. Average annual gold production is expected to reach 61,000 ounces.<\/p>\n

\u201cWe are very pleased to have Mr. Sprott as a significant shareholder of Erdene,\u201d Erdene\u2019s president and CEO Peter Akerley stated in a press release. <\/p>\n

\u201cHis investment is a strong endorsement of Erdene\u2019s high-grade Bayan Khundii gold project and the prospectivity of our 100% owned Khundii gold district. Funds from this financing will be used to initiate early construction works at Bayan Khundii and continue exploration to expand our high-grade resources.\u201d<\/p>\n

Shares of Erdene Resource Development jumped 12% on the TSX by midday Friday, capping the company at C$107.7 million.<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of the Mongolia-focused miner jumped 12% following Sprott’s C$15 million investment.<\/p>\n","protected":false},"author":88,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[949,369],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1197865"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/88"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1197865"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1197865\/revisions"}],"predecessor-version":[{"id":1197879,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1197865\/revisions\/1197879"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1197865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1197865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1197865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}