Clock ticking towards MayRio has drawn a line in the sand, wanting TRQ and the Mongolians to tie up all agreements before they initiate undercutting in May.
Recall they are still fighting with TRQ about the funding options (TRQ seems most likely to carry the day as it should be a board/management decision, unless they are playing possum to try and prevent a successful oppression action by Pentwater and Sailingstone).
With the Mongolians it’s the same funding issues, approval of the 2020 Feasability, and an extended power agreement.
The “out” for the Mongolians is swap that OTLLC shareholding for a royalty. Supposedly Rio has already put out teaser concessions on the loan interest rate and their management fees.
Given the Mongolians have always included the non-inclusion of ETG’s interests in their desire to share 1/3 of the project as a pending unsettled issue ... things may come to a head to ETG as well.
It seems that having negotiated the Earn-in to surrender 70-80% of the JV to IVN (those interests now carried into OTLLC), the promise for substantially similar treatment under the IA for ETG promised was in ETG’s view no justification for surrendering a further 34% of the retained interests to Mongolia - a stalemate that has stood for 12 years ... IVN failed to negotiate that treatment and include ETG in the IA.
You know, this gets a little tiresome after 16 years! Do I blame Greg Crowe? You bet.
https://www.northernminer.com/news/rio-tinto-looming-talks-with-mongolia-to-decide-oyu-tolgois-fate/1003827229/
Cg