Erdene Corporation and MMC to cooperate on mining projects in Mongolia

• Published date: 11 January 2023
• Publication title: Central Asian News Services

Erdene Resource Development Corporation signed strategic alliance and investment agreements with Mongolian Mining Corporation (MMC) to develop Bayan Khundii Gold Project. This strategic alliance brings together Mongolia's pre-eminent precious metals explorer with a national miner in a partnership to unlock the riches of the Khundii Minerals District (KMD).

Erdene holds three mining licenses and an exploration licence in the KMD in southwestern Mongolia that host high-grade, open pittable gold deposits, and silver, copper, lead, zinc and molybdenum resources.

MMC will invest $40 million in return for a 50% equity interest in Erdene's Mongolian subsidiary, Erdene Mongol LLC, holding the Khundii and Altan Nar mining licenses and the Ulaan exploration license through a three-stage transaction.

Erdene will retain a 50% equity interest in EM and a 5.0% Net Smelter Return royalty on all production from the Khundii, Altan Nar and Ulaan licenses, as well as any properties acquired within 5 kilometres of these licenses, beyond the first 400,000 ounces gold...