Entrée Resources Announces Non-Brokered Private Placement
Entrée Resources Ltd. (TSX:ETG; OTCQB:ERLFF – the “Company” or “Entrée”) is excited to announce a significant non-brokered private placement. This placement involves the issuance of up to 2,577,700 units, referred to as the “Units,” at a price of C$2.21 per Unit. The move aims to raise gross proceeds of up to C$5,696,717, allowing the Company to achieve its ambitious goals.
Structure of the Private Placement
Each Unit in this private placement will include one common share and one-half of a non-transferable common share purchase warrant, with each whole warrant allowing for the purchase of one additional common share at a price of C$3.00. This offer is set for a period of two years following the issuance date. Importantly, no finder's fees will be paid in connection with the Private Placement, simplifying the transaction.
Utilization of Proceeds
The proceeds from this initiative are intended for general corporate purposes. A significant focus is on implementing the partial final award from an international arbitration Tribunal. This arbitration is integral to the ongoing dynamics between the Company and its joint venture partner, as it navigates through commercial discussions related to its projects.
According to Stephen Scott, the President and CEO of Entrée Resources, this funding represents a critical step forward. Scott remarked that the Company's growth over the past year has been significant and that this latest fundraising will enable Entrée to complete ongoing work and transition into an upcoming operational phase with both momentum and a robust balance sheet.
Upcoming Developments and Regulatory Approvals
The closing of this Private Placement is expected to occur in the first quarter of 2025 and hinges on securing all necessary regulatory approvals, including acceptance from the Toronto Stock Exchange. Additionally, the securities issued through this placement will have a hold period of four months plus one day, per applicable securities laws.
Horizon Copper Corp., through its subsidiary, intends to acquire up to 625,202 Units to maintain its shareholding in Entrée. This aspect of the placement constitutes a related party transaction yet qualifies for exemptions from certain regulatory requirements based on the market capitalization guidelines.
About Entrée Resources Ltd.
Entrée Resources is a noteworthy Canadian mining entity with a unique position in the Oyu Tolgoi project, one of the most significant copper-gold projects worldwide. The Company holds a carried joint venture interest of either 20% or 30%, depending on mineralization depth. Major stakeholders include Horizon Copper Corp. and Rio Tinto, controlling approximately 24% and 16% of Entrée shares, respectively. For those interested in detailed information about Entrée's projects and its strategic direction, the official website offers extensive resources.
Contact Information
For any inquiries regarding Entrée Resources, please reach out to David Jan in Investor Relations at Entrée Resources Ltd. He can be contacted at 604-687-4777 or toll-free at 1-866-368-7330. For any email communications, individuals can send their messages to djan@EntreeResourcesLtd.com.
Frequently Asked Questions
What is Entrée Resources' core business focus?
Entrée Resources focuses on mining, particularly with a significant stake in the Oyu Tolgoi copper-gold project in Mongolia.
How does the private placement benefit Entrée Resources?
The private placement allows Entrée to raise capital for corporate purposes and operational advancements, facilitating its strategic goals.
What are the terms of the Units being offered?
Each Unit comprises one common share and one-half of a warrant, enabling the purchase of additional common shares at a predetermined price.
Who are the primary shareholders of Entrée Resources?
The primary shareholders include Horizon Copper Corp. and Rio Tinto, holding substantial shares in the Company.
When is the expected closing date for the private placement?
The closing of the private placement is anticipated in the first quarter of 2025, pending necessary regulatory approvals.
