TSX-listed Erdene Resource Development has launched a secondary listing of its common shares on the Mongolian Stock Exchange (MSE), becoming the first cross-listed, and only precious metals exploration company listed on the MSE.
Erdene, which has interests in four exploration licences and a mining licence in south-west Mongolia, has worked for two years with the government of Mongolia to develop the necessary framework to accommodate cross listings of companies that are listed on international exchanges.
“The government of Mongolia has long expressed interest in having international investors list their mining and exploration projects on the MSE as a means to develop its capital market while providing shared benefits to local investors,” Erdene CEO Peter Akerley commented on Thursday.
He added that the company had witnessed a high level of investor and public interest in Erdene’s listing.
The company has offered four-million shares to Mongolia residents, which would raise $1.38-million. The proceeds of the offering would be used to advance the Bayaran Khundii and Altan Nar gold project, as well as other exploration properties in the country.
The shares issued under the offering would start trading on the MSE on June 19. Under current Mongolian regulations, the shares listed on the MSE may only be traded through the facilities of the MSE until delisted or until cross-border trades are permitted by Mongolian authorities.