Entrée Resources' Significant Arbitration Success
Entrée Resources Ltd. (TSX: ETG; OTCQB: ERLFF), a prominent Canadian mining firm, recently announced a pivotal arbitration decision that promises to pave the way for enhanced project development. This outcome comes from an international arbitration Tribunal, which was called upon to adjudicate disputes between Entrée and its joint venture partner.
The Outcome of the Arbitration Proceedings
The Tribunal's ruling, celebrated as a substantial victory for Entrée, specifically dismissed the counterclaims presented by Oyu Tolgoi LLC (OTLLC) and Turquoise Hill Resources Ltd. This decision reinforces Entrée's position in the joint venture agreement, fostering much-needed stability for all stakeholders involved in the Oyu Tolgoi project.
Implications of the Award
Stephen Scott, President & CEO of Entrée Resources, expressed enthusiasm about the Award, emphasizing its significance in maintaining momentum on the Oyu Tolgoi project. His sentiments reflect the broader stakeholder anticipation for subsequent developmental phases.
The Foundation of the Dispute
The arbitration arose after Entrée initiated proceedings to enforce specific obligations from the amended Equity Participation and Earn-in Agreement and Joint Venture Agreement. The Tribunal underscored OTLLC’s duties, confirming their requisite actions to facilitate Entrée's advances on essential mining licenses.
Key Findings of the Tribunal
Among the Tribunal’s conclusions was the clear determination that OTLLC must provide Entrée with an official copy of the Joint Venture Agreement. Additionally, OTLLC is obligated to support the transfer of the Shivee Tolgoi and Javhlant mining licenses essential for the joint venture's ongoing development.
Financial Commitments and Future Steps
The Tribunal also addressed the responsibilities related to financial obligations when transferring the mining licenses, establishing that OTLLC would cover parts of Entrée's obligations. The Tribunal has reserved further discussions on equitable damages and the expenses incurred from arbitration to be addressed in an upcoming award.
About Entrée Resources Ltd.
Entrée Resources Ltd. stands out as a Canadian mining company with a unique business model, holding significant interests in one of the world’s largest copper-gold projects located within the depths of the Mongolian landscape. The company maintains a carried participating interest ranging from 20% to 30% in the Entrée/Oyu Tolgoi joint venture, a strategic position bolstered by backing from key stakeholders like Horizon Copper Corp. and Rio Tinto, who own about 24% and 16% of the company, respectively.
Contacting Entrée Resources
Communication regarding investor relations and inquiries can be directed to:
David Jan
Investor Relations
Entrée Resources Ltd.
Phone: 604-687-4777 | Toll-Free: 1-866-368-7330
Email: djan@EntréeResourcesLtd.com
Frequently Asked Questions
What was the decision made by the arbitration Tribunal?
The Tribunal ruled in favor of Entrée Resources, dismissing all counterclaims from the respondents.
What does this arbitration outcome mean for Entrée Resources?
This decision provides much-needed clarity and stability, allowing Entrée to move forward confidently with the Oyu Tolgoi project's development.
Who are the major stakeholders in Entrée Resources?
Key stakeholders include Horizon Copper Corp. and Rio Tinto, which hold significant equity in the company.
What are the next steps for Entrée Resources?
Entrée is evaluating its paths following the arbitration award and will keep the market informed of any developments.
How can I contact Entrée Resources for more information?
You can reach out to David Jan, Investor Relations, via phone or email for any inquiries.
