Erdene Resource Development Corp. (ERD.TO: Quote) announced that an agreement in principle has been reached whereby Advanced Primary Minerals Corp.(APD.V: Quote) or APM will acquire all of Erdene's North American interests, comprised primarily of Erdene's interest in the Donkin Coal Project.
Erdene said it will receive shares of APM in consideration for the sale of its North American interests. These shares, together with the 60% of the issued and outstanding shares of APM currently owned by Erdene, will ultimately be delivered to the Erdene shareholders.
The transaction is subject to signing a definitive agreement and receipt of approvals from the TSX, the TSX-V, the Nova Scotia Supreme Court, the shareholders of Erdene and the minority shareholders of APM, as well as compliance with all other requirements governing related-party transactions.
On behalf of Erdene, an independent committee of Erdene's board of directors was authorized to negotiate the terms of the proposed transaction with APM, including an appropriate structure and share exchange ratio.
Erdene noted that it intends to schedule a special meeting of shareholders to obtain the required approval.
The objective of this proposed 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.
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by RTT Staff Writer
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