Erdene Enters Agreement to Acquire Tereg Uul Copper-Gold Porphyry Prospect

Core Viewpoint - Erdene Resource Development Corporation has executed an option agreement to acquire up to 80% ownership in the Tereg Uul copper-gold porphyry prospect, located near the Oyu Tolgoi deposit, which is expected to become a top-four global copper producer [1][2]. Group 1: Acquisition Details - The Tereg Uul exploration license spans 6,694 hectares and is held by Tereg Uul Mines LLC, with the license issued on April 5, 2023, and currently in its third year of a maximum 12-year term [3][4]. - The option agreement allows Erdene to invest a total of US$3 million in exploration expenditures and make milestone payments totaling US$2.1 million over the first three years [5][6]. - Erdene can acquire a 51% equity stake in TUM by paying US$5 million between the third and fourth anniversaries of the agreement, with the potential to increase ownership to 80% through an additional US$10 million investment by the eighth anniversary [6][7]. Group 2: Exploration Potential - The Tereg Uul property is strategically located within a corridor of copper-gold porphyry deposits extending over 50 kilometers along the trend of Oyu Tolgoi, providing a low-risk exploration opportunity [2][4]. - Historical exploration has identified geophysical and geochemical anomalies that remain undrilled, with exploration expected to commence in late Q3 [4][6]. - The property is underlain by favorable Paleozoic host rocks similar to those at Oyu Tolgoi, and it contains several anomalous gold occurrences related to epithermal style veins [4]. Group 3: Company Overview - Erdene Resource Development Corp. is focused on the acquisition, exploration, and development of precious and base metals in Mongolia, with plans to bring the Bayan Khundii Gold Mine into production in late 2025 [8]. - The company is listed on both the Toronto and Mongolian stock exchanges and has interests in three mining licenses and an exploration license in Southwest Mongolia [8].