Erdene Resource Development continued under the same name and trading symbol and will continue to focus on precious and base metal exploration in Mongolia. Key elements of the restructuring included the following:
Aggregate Project Sale
The sale of the Company's 100% interest in a 339 acre parcel of land and the associated royalty interest in the Granite Hill aggregate property located in Hancock County, Georgia, USA, was completed in June of 2012 for $3.4 million cash.
Advanced Primary Minerals Sale
As a function of the restructuring, the Company's majority owned subsidiary, Advanced Primary Minerals Corporation ("APM"), completed the sale of its operating assets and select real estate property in Georgia, USA for $923,000 and a retained royalty interest.
Donkin Coal Project
In April of 2012, Xstrata Coal Canada ("Xstrata") announced its intention to sell their interest in the Donkin Coal Project. During this process Xstrata committed to maintaining the project timelines with the planned completion of the environmental assessment, progression of engineering work and obtaining the necessary approvals for commencement of the underground exploration phase. The Canadian Environmental Assessment Agency ("CEAA") approval process, which is required for project permission, is on track and full environmental approval is anticipated in 2013. Visit www.morienres.com for more updates on Morien and the Donkin Coal Project.
Executive Management Team Strengthened
John Budreski, who was initially added as a director of Erdene to assist with the strategic development and restructuring, was appointed as the new President and CEO of Morien Resources Corp. to manage the North American assets. With over 25 years of broad experience in senior positions in the resource and resource investment banking industries, Mr. Budreski added significant depth to the Erdene and Morien executive and board. Subsequently, Charles Pitcher, formerly President and CEO of Western Canadian Coal, and a mining engineer with over 40 years of experience, was added to the Morien board.
Year End Financial Results Summary
Erdene's year end 2012 financial statements, Management's Discussion and Analysis and Annual Information Form were filed with regulatory authorities on April 2, 2013 and are available on the Company's website at www.erdene.com and on SEDAR at www.sedar.com.
On November 9, 2012, the Company successfully completed a Plan of Arrangement with Advanced Primary Minerals Corporation. As a result of the transaction, the Company distributed its North American assets, predominantly its 25% interest in the Donkin Coal Project, to Shareholders via the distribution of Morien Resources Corp. shares. The revenue and expenses associated with the North American assets are categorized under Loss from Discontinued Operations in the Consolidated Statements of Loss and related notes.
For the 12 months ended December 31, 2012, loss from continuing operations was $4,641,082 compared to $8,986,812 in 2011.
Exploration expenses totalled $3,167,762 in fiscal 2012 compared to $4,098,634 in 2011. Expenditures were primarily directed toward the gold discovery at Altan Nar as well as the continued advancement of the Zuun Mod molybdenum-copper porphyry project. Specifically, expenditures by project were as follows:
Most Popular Stories
- Boehner Lashes Out Against Ted Cruz, Far Right
- Hawaii Official Who Release Obama Certificate Only Victim of Plane Crash
- Ford Plans New Cars, Jobs in 2014
- 'Rape Insurance' Bill Passes in Michigan
- Ted Cruz Coloring Book Selling Briskly
- Holiday Shopping Off to a Slow Start This Season
- Gold, Silver Slide on Prospects of Fed Exit
- Kim Jong Un's Uncle Executed
- Grizzly Bears Could Be Taken Off Endangered List
- TFA Recruiting DACA Recipients