Erdene seeks to split interests, focus

CANADIAN miner Erdene Resource Development is proposing to shareholders that it split the company into two – separating its projects in Mongolia and North America.
Erdene seeks to split interests, focus Erdene seeks to split interests, focus Erdene seeks to split interests, focus Erdene seeks to split interests, focus Erdene seeks to split interests, focus

Donkin project, courtesy of Erdene Resource Development.

Donna Schmidt

Officials have called an October 26 meeting to approve the plan of arrangement.

Under the plan, its Mongolian metals exploration efforts will remain under the Erdene name.

Erdene’s North American interests – including its flagship Donkin coal project – would be the main asset of what would become Morien Resources.

Morien would be TSX listed, with shareholders controlling 100% of Erdene post-arrangement and 97.25% of Morien.

“We believe the proposed division of our diverse key assets within the two public vehicles will greatly enhance the potential to create value in both the Mongolian metals projects and in the Donkin coal project and we are excited to launch these two focused entities,” president and chief executive officer Peter Akerley said.

“We are confident the flexibility we will create within Morien with its interest in what we believe to be a premier global coal asset and the dedication we can commit to the Altan Nar gold project and our other Mongolian metals exploration projects, will prove to be very beneficial to our stakeholders.”

At the same time, Morien would focus on bulk commodity efforts such as the Donkin complex.

The shareholders’ meeting is due to begin at 10.30am in Halifax, Nova Scotia, October 26, near the company’s Canadian headquarters.

Assuming approval is obtained, officials will seek court approval for the transition November 1.

It will carry a November 7 effective date.

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