VANCOUVER, June 8, 2018 /PRNewswire/ - Entrée Resources Ltd.
(TSX:ETG; NYSE American:EGI – the "Company" or
"Entrée") is pleased to announce it has sold its 0.5% net
smelter returns royalty (the "Royalty") on Candente Copper
Corp.'s Cañariaco Copper Project in Northern Peru to Anglo Pacific Group PLC (LSE:
APF; TSX: APY – "Anglo Pacific").
Under the agreement with Anglo Pacific (the "Agreement"),
Entrée transferred all the issued and outstanding shares of its
subsidiaries that directly or indirectly hold the Royalty to Anglo
Pacific for consideration of US$1
million, payable by the issuance of 478,951 Anglo Pacific
shares at the Anglo Pacific 30-day volume weighted average price of
156.6079 GBP per share as of
June 5, 2018 (the "Share
Consideration"). Entrée has agreed to hold the Share
Consideration for a period of at least 90 days following
closing.
In addition, Entrée retains the right to a portion of any future
royalty income received by Anglo Pacific in relation to the Royalty
as follows:
- 20% of any royalty payment received for any calendar quarter up
to and including the quarter ending December
31, 2029;
- 15% of any royalty payment received for any calendar quarter
commencing January 1, 2030 up to and
including the quarter ending December 31,
2034; and
- 10% of any royalty payment received for any calendar quarter
commencing January 1, 2035 up to and
including the quarter ending December 31,
2039.
Stephen Scott, President and CEO
of Entrée comments, "We are very pleased to enter into this
agreement with Anglo Pacific. In addition to making a 100% gain on
its initial US$500,000 investment,
Entrée also retains long-term exposure to a potential royalty
income stream from the Cañariaco Copper Project, when and if it is
developed. In addition to potential appreciation on the Share
Consideration and potential royalty income, Anglo Pacific has a
continuing policy of paying a substantial portion of its income
from royalties and streams to shareholders as dividends. We look
forward to that dividend income as a future source of cash.
The sale of Entrée's respective subsidiaries that hold the Royalty
to Anglo Pacific will further reduce Entrée's annual cash burn
rate, better positioning the Company as it moves towards first
development production from the Entrée/Oyu Tolgoi joint venture
property in Mongolia."
ABOUT ANGLO PACIFIC GROUP PLC
Anglo Pacific Group PLC
is a global natural resources royalty and streaming company. Anglo
Pacific's strategy is to develop a leading international
diversified royalty and streaming company with a portfolio centred
on base metals and bulk materials, focusing on accelerating income
growth through acquiring royalties and streams on projects that are
currently cash flow generating or are expected to be within the
next 24 months, as well as investment in earlier stage projects. It
is a continuing policy of Anglo Pacific to pay a substantial
portion of these royalty and stream revenues to shareholders as
dividends. More information about Anglo Pacific can be found at
www.anglopacificgroup.com.
ABOUT ENTRÉE RESOURCES LTD.
Entrée Resources Ltd. is
a well-funded Canadian mining company with a unique carried joint
venture interest on a significant portion of one of the world's
largest copper-gold projects – the Oyu Tolgoi project in
Mongolia. Entrée has a 20% carried participating interest in
the Entrée/Oyu Tolgoi joint venture, with a 30% interest in all
mineralization identified above 560 metres elevation on the
Entrée/Oyu Tolgoi joint venture property. Sandstorm Gold Ltd., Rio
Tinto and Turquoise Hill are major shareholders of Entrée, holding
approximately 14%, 9% and 8% of the shares of the Company,
respectively. More information about Entrée can be found at
www.EntreeResourcesLtd.com.
This News Release contains forward-looking statements within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and forward-looking information within the
meaning of applicable Canadian securities laws with respect
to corporate strategies and plans; sources and uses of funds; the
value and potential value of assets and the ability of Entrée to
maximize returns to shareholders; construction and continued
development of the Oyu Tolgoi underground mine; anticipated
business activities; proposed acquisitions and dispositions of
assets; and future financial performance.
In certain cases, forward-looking statements and information
can be identified by the use of words such as "plans", "expects" or
"does not expect", "is expected", "budgeted", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "does not
anticipate" or "believes" or variations of such words and phrases
or statements that certain actions, events or results "may",
"could", "would", "might", "will be taken", "occur" or "be
achieved". While the Company has based these forward-looking
statements on its expectations about future events as at the date
that such statements were prepared, the statements are not a
guarantee of Entrée's future performance and are based on numerous
assumptions regarding present and future business strategies, local
and global economic conditions, and the environment in which Entrée
will operate in the future, including the price of copper, gold and
silver, anticipated capital and operating costs, anticipated future
production and cash flows and the status of Entrée's relationship
and interaction with the Government of Mongolia, Oyu Tolgoi LLC ("OTLLC"), Rio Tinto
and Turquoise Hill Resources on the Entrée/Oyu Tolgoi joint venture
and the continued development of the Entrée/Oyu Tolgoi joint
venture property. With respect to the construction and continued
development of the Oyu Tolgoi underground mine, important risks,
uncertainties and factors which could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements and information include, amongst others,
the timing and cost of the construction and expansion of mining and
processing facilities; the timing and availability of a long term
domestic power source for the Oyu Tolgoi underground mine (or the
availability of financing for OTLLC to construct such a source);
the ability of OTLLC to secure and draw down on the supplemental
debt under the Oyu Tolgoi project finance facility and the
availability of additional financing on terms reasonably acceptable
to OTLLC, Turquoise Hill and Rio Tinto to further develop Oyu
Tolgoi; delays, and the costs which would result from delays, in
the development of the underground mine; projected copper, gold and
silver prices and demand; and production estimates and the
anticipated yearly production of copper, gold and silver at the Oyu
Tolgoi underground mine.
Other uncertainties and factors which could cause actual
results to differ materially from future results expressed or
implied by forward-looking statements and information include,
amongst others, unanticipated costs, expenses or liabilities;
discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries; the size,
grade and continuity of deposits not being interpreted correctly
from exploration results; the results of preliminary test work not
being indicative of the results of future test work; fluctuations
in commodity prices and demand; changing foreign exchange rates;
actions by Rio Tinto, Turquoise Hill Resources and OTLLC and by
government authorities including the Government of Mongolia; the availability of funding on
reasonable terms; the impact of changes in interpretation to or
changes in enforcement of laws, regulations and government
practices, including laws, regulations and government practices
with respect to mining, foreign investment, royalties and taxation;
the terms and timing of obtaining necessary environmental and other
government approvals, consents and permits; the availability and
cost of necessary items such as water, skilled labour,
transportation and appropriate smelting and refining arrangements;
unanticipated reclamation expenses; geotechnical or hydrogeological
considerations during mining being different from what was assumed;
changes to assumptions as to the availability of electrical power,
and the power rates used in operating cost estimates and financial
analyses; changes to assumptions as to salvage values; ability to
maintain the social license to operate; and misjudgments in the
course of preparing forward-looking statements.
In addition, there are also known and unknown risk factors
which may cause the actual results, performance or achievements of
Entrée to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements and information. Such factors include,
among others, risks related to international operations, including
legal and political risk in Mongolia; risks associated with changes in the
attitudes of governments to foreign investment; risks associated
with the conduct of joint ventures; global financial conditions;
changes in project parameters as plans continue to be refined;
inability to upgrade Inferred mineral resources to Indicated or
Measured mineral resources; inability to convert mineral resources
to mineral reserves; conclusions of economic evaluations; future
prices of copper, gold, silver and molybdenum; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes and other risks of the mining industry; delays in
obtaining government approvals, permits or licenses or financing or
in the completion of development or construction activities;
environmental risks; title disputes; limitations on insurance
coverage; as well as those factors discussed in the Company's most
recently filed MD&A and in the Company's Annual Information
Form for the financial year ended December
31, 2017, dated March 8, 2018
filed with the Canadian Securities Administrators and available at
www.sedar.com. Although the Company has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements. The Company is under no obligation to
update or alter any forward-looking statements except as required
under applicable securities laws.
View original
content:http://www.prnewswire.com/news-releases/entree-resources-announces-the-sale-of-its-royalty-on-the-canariaco-copper-project-300662054.html
SOURCE Entrée Resources
