VANCOUVER - Teck Resources Ltd. (TSX:TCK.B) has increased its investment in a small Halifax-based mining company that will use the funds to explore for copper in Mongolia under a strategic alliance announced last year.
Vancouver-based Teck, one of Canada's largest mining companies, received two million additional shares of Erdene Resource Development Corp. (TSX:ERD) for 17.5 cents each, for a total of $350,000.
As a result of the recent purchase and its previous holdings, Teck controls up to 14.2 per cent of Erdene's common shares through about nine million common shares and one million purchase warrants.
Erdene announced last week that the private placement would be used for exploring the Khuvyn Khar copper project and other Teck Alliance projects in Mongolia.
Erdene announced separately Monday, after the Teck deal closed, that it expects to sell a further four million equity units at 16 cents each through another private placement for gross proceeds of $650,000.
The money will be used to fund exploration on Erdene's wholly owned Altan Nar project, which has gold and other metals. Erdene said it expects the private placement of units will close by May 2.
The units consist of one Erdene common share and half of a share purchase warrant. Each full unit will allow the holder to buy an Erdene common share for 24 cents within two years, subject to conditions.
Erdene shares opened Monday at 17 cents per share on the Toronto Stock Exchange.