August 9, 2012 on: business, Mining

Erdene Resource Development Corp announced that it has entered into a definitive agreement with Advanced Primary Minerals Corporation to exchange all of Erdene's North American property interests, comprised primarily of Erdene's interest in the Donkin Coal Project in Cape Breton, Nova Scotia, for shares of APM.

Highlights 1. Following the Arrangement, all of Erdene's North American property interests will be held by an amalgamated company Amalco 2. Amalco will be focussed on the development of bulk commodity projects in North America, predominantly coal projects, led by the Donkin Project 3. Erdene will be focussed on precious and base metals exploration in Asia, primarily Mongolia 4. Upon completion of the Arrangement, the outstanding shares of Erdene (totalling 95,802,901) will effectively be split on a 50/50 basis resulting in 47,901,450 shares outstanding in Erdene and 47,901,450 shares of Amalco which will be distributed to Erdene shareholders 5. Upon completion of the Arrangement, Amalco will have 49,255,990 shares outstanding, 47,901,450 (97.25%) of which will be held by Erdene shareholders and the balance by the former APM shareholders 6. A total of $1.95M cash will be included with the North American assets being acquired by Amalco 7. It is anticipated that the remaining resources and real estate held by APM, with a fair market value of $1.1M to $1.4M, will be sold following the completion of the Arrangement 8. A new name and the management team of Amalco will be announced in an upcoming news release 9. A special meeting of the Erdene shareholders is expected to be held in Halifax, Nova Scotia in October 2012 to obtain the necessary shareholder approvals Mr Peter Akerley president & CEO said “We strongly believe that the separation of Erdene's major projects, Donkin Coal and Mongolian minerals exploration, into separate public companies will provide excellent value to the Company's shareholders. The split will provide investors with a clearer framework to assess the investment opportunity and provide management with greater flexibility in the advancement of specific projects." Erdene Resource Development Corp is a diversified resource company with metal and coal interests in Mongolia as well as the Donkin Coal Project and industrial mineral assets in North America.

SOURCE OF THIS ARTICLE : stelguru

Please note that this article and / or its accompanying media (picture, video, sound files etc…) has not been written, created or taken by M.A.D. Investment Solutions staff. It is not copyrighted to M.A.D. Investment Solutions nor does the company claim any ownership or rights towards the content and its accompanying media. The above article does not in any case represent the views or opinions of M.A.D. Investment Solutions or any of its affiliate individuals or companies. The article above is purely meant as a source of information to readers and does not constitute a legal or biding agreement in any way, shape or form. Ownership of the content and its accompanying media remains with its legal owner or contributor but was sourced from Public Domain sources. If you are the owner of this content or its media and would like it replaced or taken out of our website, please contact us on: info@mad-mongolia.com. For contact and comments directly relating to the above article and or its accompanying media, please refer to the source as stated above.

Did you enjoy this article? Please consider sharing it!

Real Estate Mongolia

M.A.D Investment Solutions Office

Sukhbaatar District, 4th Khoroo
Building no 67, Unit 1&2.
Ulaanbaatar, Mongolia

Tel: +976 11 312 500 (Office)
Tel: +976 95 853 377 (English)
Tel: +976 99 770 439 (Mongolian)
Email : info@mad-mongolia.com

Website design and contents copyright @ M.A.D. Investment Solutions 2009 - 2012 - All rights reserved. Disclaimer