- Erdene Resources (ERD) has revealed increased losses in its second quarter operational and financial results
- The Halifax-based mining company posted a quarterly net loss of approximately C$8.80 million, compared to an approximate $997,146 net loss in last year’s same quarter
- Erdene did, however, complete a $20 million fundraise during the quarter, $15 million of which came from notable precious minerals investor Eric Sprott
- Erdene attributed the increased expenses to the cost of developing its feasibility study for its Bayan Khundii project
- Erdene Resources (ERD) is up 3.5 per cent and is trading at 59 cents per share
Erdene Resources (ERD) has revealed increased losses in its second quarter operational and financial results.
The Halifax-based mining company posted a quarterly net loss of approximately C$8.80 million, compared to an approximate $997,146 net loss in last year’s same quarter.
Erdene attributed the increased expenses to the cost of developing its feasibility study for the Bayan Khundii project in Mongolia.
The feasibility study, released in July, estimated the adjusted net present value of the project at approximately $132 million, with an internal rate of return of 42 per cent.
Despite the loss, the company did complete a C$20 million financing deal during quarter, bolstering its cash supplies.
The company plans to use the funds to advance exploration at the site and in the the surrounding Khundii gold district.
Peter Akerley, The President and CEO of Erdene Resources said the company had made significant progress in advancing the Bayan Khundii gold project during the second quarter.
“Results from our second quarter of 2020’s exploration program were outstanding, with near-surface, high-grade gold intersections in all the areas targeted.
“The recently announced Bayan Khundii bankable feasibility study results demonstrate the strong economics of high-grade BK projects employing conventional mining and processing techniques.
“With the proceeds of the recent C$20 million fining, led by a strategic $15 million investment from Eric Sprott, we have funds to aggressively continue exploration to expand resources and to commence early works for the BK development,” he said.
Erdene Resources (ERD) is up 3.5 per cent and is trading at 59 cents per share at 10:30 am EDT.
