Erdene Announces Year-End Results and Provides Bayan Khundii Project Update

Core Viewpoint - Erdene Resource Development Corp. has made significant progress in the development of the Bayan Khundii Gold Project, with construction exceeding 80% completion and first gold production expected in Q3 2025 [2][4][10]. Bayan Khundii Gold Project - The Bayan Khundii gold mine is one of the highest grade open-pit gold mines under development globally and is projected to be Mongolia's largest primary gold producer upon reaching full production [2]. - As of March 2025, construction progress has surpassed 80%, with key facilities expected to be completed in Q1 and early Q2 2025 [2][4]. - The process plant is 67% complete, with commissioning expected to start in May 2025 [7]. - Expansion drilling in 2024 returned the highest grades to date, indicating strong growth potential for the project [2][10]. Financial and Operational Highlights - The company incurred US$83 million in expenditures by the end of Q4 2024, with capital expenditures expected to increase by approximately 15% from the initial budget of US$100 million due to inflation and other factors [7]. - A net loss of $8,245,886 was recorded for the year ended December 31, 2024, compared to a net income of $522,043 in 2023 [12]. - Exploration and evaluation expenses totaled $1,852,642 for 2024, up from $847,010 in 2023 [12]. Exploration Activities - A 15,000-meter ore-control drill program was conducted, confirming high-grade domains and indicating areas for potential resource growth [7][8]. - Significant drill results included intersections of 101.0 g/t gold over 4 meters and 115.1 g/t gold over 4 meters [7][10]. - A new gold prospect was discovered 4.5 km west of the Zuun Mod molybdenum-copper deposit, with high-grade samples returned from the Greater Dark Horse area [7]. Strategic Alliances and Financing - A strategic alliance with Mongolian Mining Corporation (MMC) was closed, with MMC investing US$40 million for a 50% equity interest in the company holding the Bayan Khundii Project [7]. - The company secured up to US$80 million in shareholder loans from MMC, with a five-year bullet maturity and an interest rate of 13.8% per annum [12].