Two public companies are being developed from a break-up of Erdene Resource Development. Advanced Primary Minerals (APM) will acquire all of Erdene’s North America interests which are comprised primarily of its stake in the Donkin Coal Project. Erdene shareholders will receive APM shares in consideration for the sale along with 60% of the issued and outstanding APM shares currently owned by Erdene.  1

An independent committee of Erdene’s board of directors negotiated the terms of the transaction and it is now subject to the signing of a definitive agreement as well as approval from the Toronto stock exchange, Nova Scotia Supreme Court and shareholders.

Erdene’s president Peter Akerley says the aim of the transaction is to unlock and maximize shareholder value by creating two strategically-positioned public companies, one focused on Donkin and the other focused on Mongolia minerals exploration and development. “Xstrata has announced its intention to sell its Donkin interest, which we believe will result in the project going through a transformational ownership process later this year that is anticipated to bring the project to production.”

Erdene has concentrated much of its recent Mongolian exploration efforts on its new gold discovery Altan Nar where near-surface high-grade gold zones were confirmed in February, and advancement of the Zuun Mod copper-molybdenum project.

“Having these assets in a separate public company will result in a dedicated Mongolia management team with greater flexibility to access capital for future programs,” says Peter Akerley.

APM recently announced the sale of its kaolin production assets and associated mining operation. In addition to its kaolin assets, APM also has a significant land ownership in the State of Georgia. The proposed transaction will provide the current minority shareholders of APM with exposure to Donkin, a world-class coal project with exceptional upside potential.

www.erdene.com