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Entree Resources Ltd T.ETG

Alternate Symbol(s):  ERLFF

Entree Resources Ltd. is a Canadian mining company. The Company is focused on the development and exploration of mineral property interests. The Company is principally focused on its Entree/Oyu Tolgoi JV Property in Mongolia. The Entree/Oyu Tolgoi joint venture property includes Lift 1 and Lift 2 of the Hugo North Extension copper-gold deposit, the Heruga copper-gold-molybdenum deposit, and a large underexplored, highly prospective land package. The Oyu Tolgoi project comprises two separate land holdings: the Entree/Oyu Tolgoi JV Property, which is a partnership between Entree and OTLLC, and the Oyu Tolgoi mining license, which is held by OTLLC. The Entree/Oyu Tolgoi JV Property comprises the eastern portion of the Shivee Tolgoi mining license and all the Javhlant mining license. The Company has a 56.53% interest in the Blue Rose Joint Venture. The Company has an interest in acquiring a 0.5% net smelter return royalty on the Canariaco copper project in Northern Peru.


TSX:ETG - Post by User

Post by Rock9011on Mar 21, 2024 4:34pm
221 Views
Post# 35945814

To Late to Close a Deal Now Before Arbitration

To Late to Close a Deal Now Before Arbitration

Whats at stake?

Who really knows.  ETTG"S BOD don't share information with their shareholders.  For a public company this is pretty sad. 
One could assume there appears to be 3 issues.

1- Tax equity issue - failure by operator to procure. 

2- Likely a disagreement with the operator on who has to pay MG for their 34% slice of the pie. ETG already gave up 80% for 35 million dollars worth of exploration - hardly a months production from this mine. If 80% was only worth 35 million dollars, 34% of the remaining 20% should only be worth 
$2.975 million.  Pay MG $2.975M for their 34% and call it a day. - Highly unlikely they would agree to that yet ETG is supoosed to be happy with 80% for 35M. 
3- Failure of the operator to make a reasonalbe effort to explore the entire JV property to determine      value.

The pitiful attempt of exploration since 2022 doesnt cut it.  Especially when the operator has not shared all the results of the core analysis form 2022 to date let alone anything drilled in 2023.

The operator has essentially done nothing in the last 20 years.  As they havnt held up their end of the JV the JV should be cancelled on the grounds of Failure to Perform. .  ETG couild then auction their holdings to the highest bidder. 

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