Erdene Resource seeking shareholder approval to split into two companies

HALIFAX – Erdene Resource Development Corp. (TSX:ERD) is seeking shareholder approval to split into two companies.

The Halifax-based mining exploration company said Tuesday it would retain Mongolian metals exploration projects while North American projects would be transferred to publicly traded Morien Resources Corp.

Morien’s major asset would be its 25 per cent stake in the Donkin coal project. The company would be listed on the TSX Venture Exchange (TSXV:MOX).

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Erdene’s board said that move will maximize shareholder value by allowing Erdene to focus on metals projects in Mongolia, led by a significant new gold discovery at Altan Nar.

Meanwhile, Morien can focus on the development of bulk commodity projects in North America, primarily coal projects led by Donkin.

Erdene will hold a special meeting Oct. 26 to vote on the plan.

On the Toronto Stock Exchange, Erdene’s shares fell 4.69 per cent, losing 1.5 cents to 30.5 cents in morning trading Tuesday.