Erdene Resource Development Commences Full Construction at Bayan Khundii Gold Project
Erdene Resource Development has announced the initiation of full construction at the Bayan Khundii Gold Project, a high-grade, open-pit gold mine located in south-western Mongolia.
This significant milestone follows the signing of a strategic alliance agreement (SAA) with the Mongolian Mining Corporation (MMC) on 10 January 2023, aiming to develop the Khundii Minerals District.
Under the terms of the SAA, MMC has been granted a 50 percent equity stake in Erdene’s subsidiary, Erdene Mongol (EM), which holds the mining licences for the Bayan Khundii Gold Project. MMC has also made a substantial investment of USD 40 million in EM, which encompasses the Khundii, Altan Nar, and Ulaan sites.
Erdene will retain a 50 percent equity interest in EM and will also benefit from a 5 percent net smelter return royalty on production from these licences after the first 400,000oz of gold are recovered.
It is important to note that Erdene’s interests in the Zuun Mod Molybdenum-Copper deposit and Khuvyn Khar Copper project remain wholly owned by the company.
The commencement of full construction at the Bayan Khundii Gold Project marks a significant step forward for Erdene Resource Development and its partners as they work towards unlocking the potential of this high-grade gold mine in Mongolia.