Erdene Offers Tian Poh Resources Interest in Zuum Mod Project for Cash and Equity

Erdene Resource Development Corp. (TSX:ERD) announced it has given Tian Poh Resources Limited (ASX:TPO) the option to purchase interest in Erdene’s Zuun Mod molybdenum-copper project in Mongolia. The agreement would grant Tian Poh a period of exclusivity to acquire and retain a 51 percent interest in the project for US $4.8 million in cash and equity and by meeting work commitments.

As quoted in the press release:

If Tian Poh exercises its option and meets milestones to retain its 51% interest, it will have the right to increase its interest to up to 100% through additional cash and/or equity payments. Erdene will retain a 1% net smelter return royalty, which will be subject to certain buy-down provisions. An option payment of US$50,000 plus US$200,000 in the form of a non-interest bearing debenture has been paid to Erdene. In the event Tian Poh does not exercise its option, the debenture will be convertible into Erdene shares. If Tian Poh exercises its option, the debenture proceeds will form part of the total purchase consideration. The exclusivity and option period expires on June 9, 2015. The Transaction is subject to approval from the Toronto Stock Exchange, the Australian Stock Exchange and Tian Poh’s shareholders.

Click here to read the full Erdene Resource Development Corp. (TSX:ERD) press release.