Mongolian Co-ownershipI don't believe it is correct to regard Mongolia negotiating a purchased interest in ETG's licences in return for stability agreements equivalent to the TRQ IA as a bad thing.
ETG has reserves and prime exploration targets both on the JV, but more importantly, on the 100% ground adjoining OT that so far exceed the implied market cap in potential value and downstream cashflows that anything to monetize and remove uncertainty is in my view almost sure to be a net benefit.
With confidence there is a contractually agreed and settled legal framework to move from exploration to mining, the possibilities in Mongolia become very exciting, and the massive discount to asset values caused by perceived country risk should be reduced.
Imagine any of: expansion of HNE and acceleration of the JV mining in Lift 1; another deposit discovered on the JV; sale or development decision for Heruga; and especially a discovery on our 100% ground if we have a settled stability agreement and the Mongolians as partners eager to press on with development.
This has been a necessary and delayed turn of events for six years.
Positive development IMHO.
cg