Хураангуй:
At this period where Mongolia’s economic growth is determined with mining sector growth, mining companies are expanding their operations and attempting to use various financing mechanisms. Mining sector in the international platform, specially companies operating in the exploration sector, face variety of challenges one of which is communicating with the local community, companies and private business ventures seeking solutions to increase their return from the business activities by being on the same wavelength with all types of participants of society. Clear example of this is Erdene Resource Development Corporation carrying out gold exploration project in Mongolia, which is registered in the Toronto Stock Exchange, increased participation of local communities through raising capital by cross-listing on MSE in 2018.
In particular, the first ever cross-listing of a Toronto Stock Exchange listed company on the MSE, which has only market value of 2 trillion tugriks, was the key reason to verify as a researcher whether theoretically it was significant to raise company’s value, reputation and stock liquidity, on the other hand, whether the company aimed to strengthen its relations with the local community by offering shares as a result of cross-listing even if the costs were high.
