A surface exploration program to define drill targets is underway at the Company's Khuvyn Khar copper porphyry prospect, located 40 kilometres west of the Altan Nar gold project. The program, consisting of detailed mapping, core re-logging and geophysics, is a follow-up to drilling completed by the Company in 2011 which intersected 34 metres of 1.3% copper and 9 g/t silver. Over the past several years, Erdene has carried out regional exploration in an area of southwestern Mongolia designated as the Trans Altai Project Area generating multiple gold and base metal targets. The Teck-Erdene Alliance is now evaluating both the Khuvyn Khar and Trans Altai areas.
Significant Cost-Saving Initiatives
The Company also presented information during the AGM regarding significant cost-saving initiatives undertaken during the past year and planned for the remainder of 2013 and 2014. In summary, the Company entered 2012 with the target to reduce General and Administration expenditures ("G&A") by 18% and that target was met. For 2013-2014 that target is a 43% reduction or greater. Erdene is below average on G&A in our peer group and bottom 10th percentile in terms of G&A of internationally listed exploration companies active in Mongolia and in the top third for ratio of Exploration & Development ("E&D") to G&A. Through the use of incentive stock options and deferred share units, the Company has also secured a significant reduction in executive and management salaries which also aligns the interest of directors and staff with that of our shareholders. In addition, through joint ventures, the Company has redirected a significant portion of its project funding costs, and is maintaining a reduced budget for the Altan Nar gold project until additional funds are accessed.
Deferred Share Units Granted
In an effort to reduce cash outflows and eliminate certain future commitments, the Company is utilizing the deferred share unit program to more closely align the Company's compensation plan with shareholder expectations. Effective July 1, 2013, senior management has elected to further reduce cash compensation and the executive have surrendered their rights to future severance in return for the issuance of deferred share units. On June 30, 2013 and July 1, 2013, the Company granted a combined 900,297 Deferred Share Units ("DSU") at $0.12 per share to certain officers, directors and employees of the Company.
About Erdene Resource Development Corp.
Erdene is a Canada-based junior resource company focused on the acquisition, exploration, and development of base and precious metals in underexplored and highly prospective Mongolia. Our strength comes from a major new gold discovery, a large molybdenum-copper porphyry resource, and a recent alliance with Teck Resources to fund and explore a new copper porphyry discovery and Erdene's large land holding, 200 kilometres from the China border in southwest Mongolia. These projects are managed by a highly experienced management team with over 15 years' experience in the country, providing the Company with a unique opportunity to participate in this period of unprecedented economic growth in Mongolia. This growth is fuelled by proximity to China and the discovery and development of a number of world-class mineral projects that are transforming the country into one of Asia's natural resource capitals. For further information on the Company, please visit www.erdene.com. Erdene has 58,785,299 issued and outstanding common shares and, a fully diluted position of 66,535,716 common shares.
Certain information regarding Erdene contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Erdene believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Erdene cautions that actual performance will be affected by a number of factors, most of which are beyond its control, and that future events and results may vary substantially from what Erdene currently foresees. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration results, continued availability of capital and financing and general economic, market or business conditions. The forward-looking statements are expressly qualified in their entirety by this cautionary statement. The information contained herein is stated as of the current date and is subject to change after that date. The Company does not assume the obligation to revise or update these forward-looking statements, except as may be required under applicable securities laws.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENTS OF THIS RELEASE
Erdene Resource Development Corp.
Peter C. Akerley, President and CEO
Ken W. MacDonald
Vice President Business Strategy and CFO
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