Erdene Resource Development has initiated full construction at the Bayan Khundii Gold Project, a high-grade, open-pit gold mine in south-western Mongolia.

This follows a strategic alliance agreement (SAA) with MMC to develop the Khundii Minerals District, signed on 10 January 2023.

The SAA was formalised later that month, granting MMC a 50 percent equity stake in Erdene’s subsidiary, Erdene Mongol (EM), which holds the mining licences for the project.

MMC invested USD 40 million in EM, which holds the licences for the Khundii, Altan Nar and Ulaan sites.

Erdene retains a 50 percent equity interest in EM and a 5 percent net smelter return royalty on production from these licences after the first 400,000oz of gold are recovered.

Erdene’s interests in the Zuun Mod Molybdenum-Copper deposit and Khuvyn Khar Copper project remain wholly owned by the company.