08:27 AM EST, 12/10/2024 (MT Newswires) -- Erdene Resource Development ( ERDCF ) on Tuesday said it has executed an up to US$50 million working capital facility with the Trade and Development Bank of Mongolia (TDB) to fund commissioning and ramp up of the Bayan Khundii Gold Project.

The loan has a 24-month term and will be repayable through six equal payments during the final six months of the term. Proceeds will fund pre-mining and commissioning for the project, which is slated to start pre-production mining in the second quarter of next year. Commercial production is forecast to begin in the third quarter.

Erdene has also received commitments for the exercise of $5 million of warrants, including from cornerstone investor Eric Sprott. These proceeds will allow the company to advance other projects including the Zuun Mod project, one of Asia's largest undeveloped molybdenum resources.