Investor Sandstorm Gold buys 5 million common shares at C$0.20 apiece
By Devika Patel
Knoxville, Tenn., April 11 – Erdene Resource Development Corp. said it has arranged a C$1 million private placement of stock with Sandstorm Gold Ltd.
The company will sell 5 million common shares at C$0.20 per share. The price per share is a 4.76% discount to C$0.21, the April 8 closing share price.
Sandstorm also will issue the company C$1.5 million in Sandstorm common shares to purchase a 2% net smelter returns royalty on the Bayan Khundii gold project and Altan Nar gold-polymetallic project. Erdene has a three-year option to buy back 50% of the net smelter returns royalty for C$1.2 million, which will reduce the net smelter returns royalty to 1%.
Proceeds will be used to advance exploration and development programs on the company's gold projects in southwest Mongolia.
Erdene is a resource exploration company based in Dartmouth, N.S.
| Issuer: | Erdene Resource Development Corp.
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| Issue: | Common stock
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| Amount: | C$1 million
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| Shares: | 5 million
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| Price: | C$0.20
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| Warrants: | No
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| Investor: | Sandstorm Gold Ltd.
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| Pricing date: | April 11
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| Stock symbol: | Toronto: ERD
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| Stock price: | C$0.21 at close April 8
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| Market capitalization: | C$26.37 million
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