AKIPRESS.COM - Erdene Resource Development Corp. announced its intention to issue, by way of a non-brokered private placement, 1,063,830 shares to Teck Resources Limited at a price of $0.47 per share for gross proceeds of $500,000.

The move fulfills Teck's annual equity investment obligation pursuant to the Strategic Alliance between Erdene and Teck announced by Erdene on April 11, 2013. Net proceeds of the Private Placement will be used for exploration of the company's Teck-Alliance projects in Mongolia.

The private placement is expected to close on or before June 15, 2016, and is subject to certain conditions, including, but not limited to, the receipt of all necessary approvals including the approval and acceptance by the Toronto Stock Exchange. All securities to be issued pursuant to the private placement will be subject to a four-month hold period from the closing date.

The Erdene's Alliance with Teck was formed to fund and carry out mineral exploration in the Trans Altai region of southwest Mongolia. Under the terms of the agreement, Teck has the option to subscribe for shares of Erdene, priced at the then current market plus 10%, until it has invested $3 million or acquired through subscriptions 19.9% of the outstanding shares of Erdene, whichever occurs first. To date, Teck has subscribed for $2.5 million in Erdene shares and owns 10.8% of Erdene's issued and outstanding common shares after giving effect to this subscription.