- News Releases
A Strategic Alliance with Teck Resources Limited ("Teck”) was entered into in April 2013, and was formed by the signing of option and private placement agreements (collectively, “Agreement”) to fund and carry out mineral exploration in the Trans Altai region of southwest Mongolia. Under the terms of the Agreement, Teck has the option to subscribe for shares of Erdene, priced at the then current market plus 10%, until it has invested $3 million or acquired through subscriptions 19.9% of the outstanding shares of Erdene, whichever occurs first. A minimum of $500,000 is to be subscribed by Teck on each anniversary date of the closing of the Agreement to renew the Alliance. Teck has subscribed for $2.5 million in Erdene shares and owns approximately 8.9% of Erdene’s issued and outstanding common shares, as of March 2017.
Excluded from the Alliance are the Company’s Bayan Khundii, Altan Arrow, and Altan Nar gold projects, along with the Zuun Mod and Khuvyn Khar projects.
A multi-year program of regional exploration, designed to identify porphyry and porphyry-related mineralization, has been underway since inception. The program has provided the Alliance with a significant amount of technical information that continues to be evaluated. During the 2015 program the Alliance was able to secure new exploration licenses within the targeted area and is now reviewing the potential for future acquisitions within the Mongolia licensing system. The 2016 exploration program consisted of surface geochemical sampling, geological mapping and prospecting, and analysis of newly acquired satellite data.