Erdene Resource Development Corp (TSX:ERD, OTC:ERDCF) has secured significant financing from Mongolian Mining Corporation (MMC) for the development of the Bayan Khundii Gold Project
The company announced the successful execution of debt finance agreements totaling up to US$80 million with MMC.
The financing is earmarked for the development of the high-grade, open-pit Bayan Khundii Gold Project in southwestern Mongolia.
The funding, structured as a shareholder loan, will primarily finance the construction of the Bayan Khundii gold mine and processing complex, with an initial tranche of US$50 million. Additional tranches, up to a total of US$80 million, may be drawn subject to MMC’s discretion.
This financing follows MMC’s earlier investment of US$40 million for a 50% equity interest in EM, forming part of the Strategic Alliance Agreement. In total, MMC is poised to inject up to US$120 million into Bayan Khundii.
MMC is…
