Sandstorm Metals & Energy Ltd STTYF

Mongolia PULLS ENTREE PERMIT

[twintomatoes]

Mongolia Pulls Entree Gold Permit Near Oyu Tolgoi Saying Invalid

 

https://www.bloomberg.com/news/2013-02-26/mongolia-pulls-entree-gold-permit-near-oyu-tolgoi-saying-invalid.html

 

Mongolia’s mining ministry said it canceled two licenses held by Canada’s Entree Gold Inc. (ETG) on land that forms part of the Oyu Tolgoi deposit, the nation’s biggest copper and gold project.

Mongolia President Tsakhia Elbegdorj this month requested Rio Tinto Group, its partner in Oyu Tolgoi, to transfer all licenses connected to the mine to the venture between the government and Rio, the world’s second-largest mining company. That included Entree Gold, which is 23.6 percent owned by Rio.

Entree Gold in 2009 upgraded its exploration permits to mining licenses, the ministry said today in a statement on its website. The award of a mining license by law can only be done by the Mineral Resource Authority, not the mining ministry, and is therefore invalid, according to the statement.

“The current mining minister has annulled the 2009 resolution and transferred the matter to the Mineral Resource Authority,” according to the statement. Should Entree Gold mine the area, Mongolia will lose its share of profits from Oyu Tolgoi, according to the document.

An Entree Gold official in Mongolia’s capital Ulan Bator said he couldn’t comment as he didn’t have authority to speak with the media. Mona Forester, Entree’s vice president based in Vancouver, could not be immediately reached outside regular business hours.

Rio controls 64 percent of the Oyu Tolgoi venture and Mongolia’s government the rest. The mine, also the subject of disputes between the two partners, is the world’s biggest under construction for copper and gold and is set to start production in June. When fully operating it will account for 30 percent of Mongolia’s gross domestic product.

 

 

 

[Thundersole]

Arrrgh.... This almost had to be expected, there have been nothing but horror stories like this coming out of Mongolia.

[Thundersole]

Why is the market not responding, this news was ou before the market opened.

[doomz78]

the market priced this moment the day the stream was announced.  Its a forward looking mechanism.  Not always re-actionairy.  

[Thundersole]

Has Sandstorm given any money to Entree yet, I wonder if they have any outs, or do we end up owning a chunk of another company.

[bob4977]

Mongolia’s mining ministry said it canceled two licenses held by Canada’s Entree Gold Inc. (ETG) on land that forms part of the Oyu Tolgoi deposit, the nation’s biggest copper and gold project. Mongolia President Tsakhia Elbegdorj this month requested Rio Tinto Group, its partner in Oyu Tolgoi, to transfer all licenses connected to the mine to the venture between the government and Rio, the world

[Thundersole]

I would like to hear some comment from Sandstorm on how the company is affected.

[Einherjar]

the money is gone...sry.       Sandstorm has transferred the $40 million to Entrée, but in the contract we do have a clause which stipulates that if this type of situation was to occur, we would be entitled to our upfront payment back.   I think it is premature to jump to conclusions on this. As more information comes to light, we will update our investors.    

[GreenGenie]

@Einherjar   Do you work for Sandstorm?   If not, where are you getting this information from?

[thegazelle]

The message was from Denver Harris, IR Manager and VP Capital Markets @ Sandstorm.

[GreenGenie]

Thanks Gazelle.   I was wondering if Einherjar and Denver Harris are the same person.   If not, then I'm wondering where Einherjar got the information from, since I haven't been able to find it online.