Entrée Resources Closes Significant Financing
VANCOUVER, British Columbia -- Entrée Resources Ltd. (TSX:ETG; OTCQB:ERLFF – the “Company” or “Entrée”) is excited to share that it has successfully closed a non-brokered private placement, marking a significant milestone for the company.
Details of the Financing
The financing involved the issuance of 2,577,700 units at a price of C$2.21 per unit, yielding gross proceeds of approximately C$5,696,717. Each 'Unit' comprises one common share and one-half of a non-transferable common share purchase warrant. Holders of these Warrants can purchase additional common shares at a price of C$3.00 per share for a period of two years. There is a hold period that will expire on later this year.
Utilization of Proceeds
The net proceeds from this financing are intended for general corporate purposes. A significant portion will help in implementing the partial final award from an international arbitration tribunal related to the Company’s ongoing case against joint venture partner Oyu Tolgoi LLC and Turquoise Hill Resources Ltd.
Engagement with Stakeholders
The funds will also support ongoing discussions with stakeholders connected to the Oyu Tolgoi project, further ensuring Entrée's pivotal role in these vital commercial negotiations.
Insider Participation in the Financing
Notably, Horizon Copper Corp., through its fully owned subsidiary, acquired 625,202 Units under the same terms as other investors. This involvement positions Horizon as a significant stakeholder, holding around 24.25% of Entrée's issued and outstanding shares.
Compliance with Regulations
Horizon’s participation is exempt from formal valuation under Multilateral Instrument 61-101 due to the nature of its investment, making it an important player in this financing round.
Future Outlook for Entrée Resources
Entrée Resources is focused on its ambitious projects, particularly in relation to its strategic interests in the Oyu Tolgoi copper-gold mine in Mongolia. As a Canadian mining firm with a unique carried joint venture interest, Entrée has established itself in the industry with substantial backing from major shareholders such as Horizon Copper Corp. and Rio Tinto.
About Entrée Resources Ltd.
With a percentage carried participating interest contingent upon the depth of mineralization, the company is strategically positioned to leverage the robust opportunities present at one of the world’s largest copper-gold projects.
Contact Information
For more information, reach out to:
David Jan
Investor Relations
Entrée Resources Ltd.
Tel: 604-687-4777 | Toll Free: 1-866-368-7330
E-mail: djan@EntreeResourcesLtd.com
Frequently Asked Questions
What is the total amount raised in Entrée's recent financing?
Entrée Resources closed a financing round raising approximately C$5.7 million.
What will the proceeds of the financing be used for?
The funds will be used for general corporate purposes, including arbitration and ongoing commercial discussions with stakeholders.
How many Units were issued in the private placement?
A total of 2,577,700 Units were issued as part of the financing.
Who participated in this financing?
Horizon Copper Corp. was a notable participant, acquiring 625,202 Units.
What is the significance of the Oyu Tolgoi project for Entrée?
The Oyu Tolgoi project represents a crucial opportunity for Entrée, given its substantial carried joint venture interest in this major copper-gold mining operation.
