Erdene Executes Project Finance Mandate Letter With Export Development Canada for Bayan Khundii Gold Project
HALIFAX, Nova Scotia, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Erdene Resource Development Corp. (TSX:ERD; MSE:ERDN) ("Erdene" or the
"Company") is pleased to announce that it has executed a mandate letter with Export Development Canada (“EDC”) for an up to US$55 million senior secured debt facility to develop the Bayan
Khundii Gold Project in southwest Mongolia. EDC’s financing for the Project is conditional upon the satisfactory completion of due diligence, which is currently underway and expected to conclude in
the second quarter of 2021.
Quotes from the Company:
"Executing the debt financing mandate letter with EDC is an important milestone in the development of our high-grade Bayan Khundii Gold Project,” said Peter Akerley, Erdene’s President and CEO. “EDC has assisted many companies in developing mining projects internationally, including in Mongolia. The involvement of EDC, as well as our major shareholder the European Bank for Reconstruction and Development will help to ensure that the Project will be developed to the highest environmental and social standards, delivering benefits for Mongolian and international stakeholders.”
“Construction readiness work is underway as we seek to move rapidly through construction to production, with detailed design, scheduling and procurement workstreams well progressed,” continued Mr. Akerley. “Concurrently, the company is focused on expanding the resources throughout our Khundii Gold District as we target first gold in 2022."
Mandate Letter
The senior secured debt facility of up to US$55 million will be used for the development, construction and working capital requirements of the Bayan Khundii Gold Project. Financing under this facility will be subject to customary conditions precedent, including satisfactory technical, legal, social, and environmental due diligence, execution of acceptable terms, and documentation and obtaining final credit approval.
The Company is managing Project expenditures and commitments to synchronize spending with project finance cashflow timelines.
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HCF International Advisers (Financial Adviser) and McInnes Cooper LLP (Project Finance Counsel) are acting as Erdene’s advisors. The Lenders are being advised by Fasken Martineau LLP (Lenders' Counsel).
About EDC
Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage. As international risk experts, EDC equips Canadian companies with the tools they need – the trade knowledge, financing solutions, equity, insurance, and connections – to grow their business with confidence. Underlying this support is a commitment to sustainable and responsible business. Further information is available at 1-800-229-0575 or www.edc.ca.