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[July 2009]
Erdene Reaffirms Strategic Plan at AGM
Erdene Resource Development Corp (Halifax, Nova Scotia, Canada), a diversified minerals company with assets in Canada, the USA and Mongolia, reaffirmed its strategic growth plan for its four distinct lines of business at its AGM of Shareholders, held on 25 June 2009.
2008 Achievements were outlined as:
- Completed Underground Rehabilitation and Drilling at Donkin
- Announced first ever NI 43-101 resource at Zuun Mod Project
- Successfully completed private placement of $18.6 million
- Sold Galshar Coal Project for Cash and Royalty
- Spun-out Kaolin business through a reverse takeover to acquire majority position in new public company: Advanced Primary Minerals (APM)
"Erdene is focused on building value through our resource exploration and development efforts in the China-Mongolia region, in eastern North America through our Donkin Coal project, construction materials efforts and industrial minerals developments through our controlled subsidiary, APM," said Peter Akerley, President and CEO. "Our established team, partners and knowledge-base, coupled with our strong financial position, enables us to advance our projects along the development pipeline to create shareholder value."
Erdene has established its strategic growth plans for each of its four distinct lines of business.
In the China-Mongolia region, Erdene will continue to search for new world class resource discoveries while establishing itself as the partner of choice for companies that are active in the country. During 2009-2010, Erdene will be seeking to increase its inventory of metals and coal projects in the region.
At its wholly-owned Zuun Mod molybdenum project located within 200 kilometres of China's border, Erdene plans to advance Zuun Mod to the pre-feasibility/mining licence stage and secure a partner for its development.
As for its Mongolian coal division, Erdene plans to advance its Mongolian projects under the Xstrata alliance and assist its partners in advancing the Galshar project toward production accelerating the royalty interest secured during the sale in 2008.
Erdene, through its Donkin joint venture has a two-phase development plan for the Donkin Coal project, located in eastern Canada, which is operated by Xstrata Donkin Coal Management Limited. In the near-term, Erdene expects the Donkin Coal project to be advanced to Continuous Miner (‘CM’) production and to complete a longwall feasibility study. This phase is currently pending a sales contract with domestic and international consumers. Following a 12 to 18 month CM production phase, a longwall decision would be made and upon a positive decision, production could begin in 2013-2015, which will establish significant cash-flow for Erdene and its investors.
On the Construction Materials front, Erdene is anticipating a royalty cash flow from its Granite Hill project to begin in 2010. Erdene also aims to secure and advance through feasibility and permitting, world-class construction aggregate projects in strategic areas relative to its target east coast US markets.
Through APM, Erdene's 60% owned subsidiary, the company's goal in the near term is to gain commercial acceptance as a specialised primary kaolin producer and generate significant cash flow. By 2012, APM plans to significantly expand its business by implementing the second phase of its development programme.
www.erdene.com
ENDS