07:57 AM EDT, 07/03/2025 (MT Newswires) -- Erdene Resource Development ( ERDCF ) said Thursday that it secured an option to acquire up to 80% of the Tereg Uul copper-gold porphyry prospect in Mongolia.

The project is located about 10 kilometers southwest of the Oyu Tolgoi mine, the company said.

"We are excited to explore for copper and gold along trend of Oyu Tolgoi, soon to become a top-four global copper producer," said Peter Akerley, Erdene's president and CEO. "This option agreement provides Erdene a low-risk opportunity to explore proximal to one of the largest copper-gold systems globally."

Under the terms, Erdene must pay the option grantor US$2.3 million and commit US$3 million in exploration expenditures over three years. The company will acquire an initial 51% project stake by paying US$5 million between the third and fourth anniversaries of the agreement.

Erdene can acquire an up to 80% stake by investing a further US$10 million in exploration and evaluation expenditures, and through an additional payment of US$8 million on or before the eighth anniversary of the agreement.

Erdene plans to commence exploration at Tereg Uul late in the third quarter.

The company's share price jumped 10% on Wednesday to $0.97 on the TSX.