Erdene announces conversion of EBRD loan to help finance Bayan project
Canada-headquartered Erdene Resource Development Corp has announced that the European Bank for Reconstruction and Development has exercised its conversion option in respect of its $5 million convertible loan with the company.
Following conversion of the loan, the EBRD owns and controls 30,043,290 common shares representing approximately 11.2% of the issued and outstanding common shares of Erdene Resource Development Corp.
The proceeds of the EBRD Convertible Loan provide the funding to complete the Feasibility Study at Erdene Resource's 100%-owned Bayan Khundii Gold Project, in south-west Mongolia.
Peter Akerley, Erdene’s President and CEO, said: "“The EBRD’s conversion, along with the proceeds of the C$20 million equity financing led by a C$15 million strategic investment from Eric Sprott position Erdene to secure the project finance required to move Bayan Khundii rapidly to production. The company targets first gold in 2022.
