Entree Resources Ltd T.ETG

Rio wants to buy Entree Mongolia leases

[Ausguy]

https://www.afr.com/companies/mining/rio-tinto-racing-to-seal-mongolian-copper-deal-20241102-p5knen

[Ausguy]

But the tenement that will host “panel cave one” is 20 per cent-owned by Entree, and Rio has not been able to convince Entree to sell its rights over the tenement. The impasse threatens to disrupt the Oyu Tolgoi mine plan because construction of panel cave one cannot go ahead until Rio and Entree have a deal.

[Rock9011]

RT hasn't been able to convince Entree because RT is a low baller .  Plain and simple.  Everything is for sale at the right price.   This is Economics 101..  Granted The value is debatable because the ore bodies havn't been defined.  This mickey mouse process of ending core holes in mineralization is a good example.  If one wants to purchase a property

[raphaelle2]

Agreed. But IMO, RT didn't anticipate, 10 years ago, the increasing power of GOM in this whole circus. So far this cost them a few billions with TRQ. You can be sure that now, they will succeed in extracting more $$$ on this potential future deal... My bet: in a few decades, GOM will own 75% of OT. Hurry up RT! GLTA

[lumpy13]

raphaelle2  Briliant 20/20 hindsight analysis.  But, please, tell us what RT should have done?  A mining company cuts a deal with  host govt, trying to do a fair deal, in accordance with international best practices.  But the govt keeps changing the  terms of the deal. What leverage does RT have when this happens?   

[raphaelle2]

lumpy13, From the short-lived "DUBAI deal" of 2015, hastily concluded in a weekend by  J S Jacques, to the many technical and financial controversies related to the underground mine, I doubt that this project meets many international standards...   Not to mention the final buyout of TRQ.   In any case, that belongs to the past and has been well documented.