RE:Entree resources - creeping buyout by sandstorm?Schocor,
I've always said I thought Entree could be a buyout target for Sandstorm. The Entree portion of Oyu Tolgi is basically set up and looks like a stream. Much like Mariana Resources did with Hod Madan.
The main issue is of course is the current state of affais between the Governmennt of Mongolia, Turquoise Hill and Rio Tinto. Until everything gets sorted out I would think Sandstorm is looking at this as an investment with potentially an eye on a buyout. The other issue with a buyout now or in the not to distant future is the production timeline. It is still 3-5 years before the current mine plan gets to Entrees portion of the Hugo North deposit. So it's a pretty good sized investment for having to wait that long. However the prize is big. Noland has already said when they do get there they will be producing $100 million in revenues annually.
Interestinng times indeed.