Deal on $5 billion underground expansion at Oyu Tolgoi
3 days ago,the government and Rio Tinto reached an agreement paving the way for work to resume on a delayed $5 billion underground expansion at Oyu Tolgoi.https://www.demanjo.com/news/business/1718189/mongolia-and-rio-tinto-sign-oyu-tolgoi-deal.html .Sandstorm has agreed to purchase an amount equal to 25.7% or 33.8% of Entrée’s 20% share of the gold and silver by-products produced from the Heruga and Hugo North Extension deposits, respectively and an amount equal to 2.5% of Entrée’s 20% share of the copper produced. The deposits are on the Entrée – Oyu Tolgoi LLC joint venture property in Mongolia which forms part of the world-class Oyu Tolgoi copper mining complex. Sandstorm will make ongoing payments equal to US$220 per ounce of gold, US$5 per ounce of silver and US$0.50 per pound of copper (subject to inflationary adjustments) until approximately 8.6 million ounces of gold, 40.3 million ounces of silver and 9.1 billion pounds of copper have been produced from the joint venture property. Thereafter, the purchase price will increase to US$500 per ounce of gold, US$10 per ounce of silver and US$1.10 per pound of copper (subject to inflationary adjustments). Sandstorm made an upfront cash deposit of US$40 million to acquire the stream.