Entrée Resources Announces Non-Brokered Private Placement
Entrée Resources Announces Non-Brokered Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES
VANCOUVER, British Columbia, Jan. 21, 2025 -- Entrée Resources Ltd. (TSX:ETG; OTCQB:ERLFF – the “ Company” or
“Entrée”) is pleased to announce a non-brokered private placement of up to an aggregate 2,577,700 units of the Company (the
“Units”) to two placees at a price of C$2.21 per Unit for gross proceeds of up to C$5,696,717 (the “Private Placement ”).
Each Unit will consist of one common share and one-half of one non-transferable common share purchase warrant (each whole
warrant, a “Warrant ”). Each Warrant entitles the holder to purchase one additional common share of the Company at a price
of C$3.00 per share for a period of two years following the date of issuance. No finder’s fees will be payable in connection with
the Private Placement.
The net proceeds from the Private Placement are expected to be used for general corporate purposes, including
implementation of the partial final award made by the three-member international arbitration Tribunal appointed in connection
with the Company’s binding arbitration proceedings against its joint venture partner Oyu Tolgoi LLC (“OTLLC”) and Turquoise
Hill Resources Ltd. (see the Company’s News Release dated December 19, 2024 titled “Entrée Resources Wins Arbitration
Decision”) and to support ongoing commercial discussions with Oyu Tolgoi project stakeholders.
Stephen Scott, the Company’s President & CEO commented, “The Company has made enormous strides forward in the past
year and is closing in on achieving its stated business objectives. Raising this money now enables Entrée to finish the current
work and move on to the next chapter with momentum and a strong balance sheet”.
Closing of the Private Placement is anticipated to occur in the first quarter of 2025 and is subject to receipt of all necessary
regulatory approvals including acceptance by the Toronto Stock Exchange. The securities issued in connection with the
Private Placement will be subject to a hold period of four months plus one day from the date of issuance, in accordance with
applicable securities laws.
Subject to receipt of all necessary regulatory approvals, Horizon Copper Corp. (“ Horizon”), through its wholly owned
subsidiary, 1363013 B.C. Ltd., an insider of the Company, will acquire up to 625,202 Units under the Private Placement to
maintain its current proportionate interest in the Company. Participation by Horizon in the Private Placement would constitute
a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in
Special Transactions (“MI 61-101”). However, such participation would be exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101 based on the fact that neither the fair market value of the Units subscribed for
by Horizon, nor the consideration paid by Horizon for the Units, would exceed 25% of the Company’s market capitalization.
The securities being offered pursuant to the Private Placement have not been, and will not be registered under the United
States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within the United States
absent U.S. federal and state registration or an applicable exemption from the U.S. registration requirements. This news
release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
ABOUT ENTRÉE RESOURCES LTD.
Entrée Resources Ltd. is a 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% or 30% carried participating
interest in the Entrée/Oyu Tolgoi joint venture, depending on the depth of mineralization. Horizon Copper Corp. and Rio Tinto
are major shareholders of Entrée, beneficially holding approximately 24% and 16% of the shares of the Company, respectively.
More information about Entrée can be found at www.EntreeResourcesLtd.com.
FURTHER INFORMATION
David Jan
Investor Relations
Entrée Resources Ltd.
Tel: 604-687-4777 | Toll Free: 1-866-368-7330
E-mail: [email protected]
This News Release contains forward-looking information within the meaning of applicable Canadian securities laws with
respect to corporate strategies and plans; requirements for additional capital; the proposed Private Placement; anticipated
closing of the proposed Private Placement; the ability of the Company to obtain the required regulatory approvals; Horizon’s
participation in the Private Placement; anticipated use of proceeds; and implementation of the partial final arbitration award,
commercial discussions, and the ability of the Company to meet its business objectives.
In certain cases, forward-looking information can be identified by 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 this forward-looking information on its expectations
about future events as at the date that such information was prepared, the information is not a guarantee of Entrée’s future
performance and is based on numerous assumptions regarding present and future business strategies; the correct
interpretation of agreements, laws and regulations; the commencement and conclusion of arbitration proceedings, including
the potential benefits, timing and outcome of arbitration proceedings; the potential benefits, timing and outcome of
discussions with the Government of Mongolia, Erdenes Oyu Tolgoi LLC, OTLLC, and Rio Tinto; the future ownership of the
Shivee Tolgoi and Javhlant mining licenses; that the Company will continue to have timely access to detailed technical,
financial, and operational information about the Entrée/Oyu Tolgoi joint venture property, the Oyu Tolgoi project, and
government relations to enable the Company to properly assess, act on, and disclose material risks and opportunities as they
arise; local and global economic conditions and the environment in which Entrée will operate in the future, including
commodity prices, projected grades, projected dilution, anticipated capital and operating costs, including inflationary pressures
thereon resulting in cost escalation, and anticipated future production and cash flows; the anticipated location of certain
infrastructure and sequence of mining within and across panel boundaries; the construction and continued development of the
Oyu Tolgoi underground mine; the status of Entrée’s relationship and interaction with the Government of Mongolia, Erdenes
Oyu Tolgoi LLC, OTLLC, and Rio Tinto; and the Company’s ability to operate sustainably, its community relations, and its
social license to operate.
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 information include, amongst others, the current economic climate and the significant volatility, uncertainty
and disruption arising in connection with the Ukraine conflict; the nature of the ongoing relationship and interaction between
OTLLC, Rio Tinto, Erdenes Oyu Tolgoi LLC and the Government of Mongolia with respect to the continued operation and
development of Oyu Tolgoi; the continuation of undercutting in accordance with the mine plans and designs in the 2023 Oyu
Tolgoi Feasibility Study; applicable taxes and royalty rates; the future ownership of the Shivee Tolgoi and Javhlant mining
licenses; the amount of any future funding gap to complete the Oyu Tolgoi project and the availability and amount of potential
sources of additional funding; the timing and cost of the construction and expansion of mining and processing facilities;
inflationary pressures on prices for critical supplies for Oyu Tolgoi resulting in cost escalation; the ability of OTLLC or the
Government of Mongolia to deliver a domestic power source for Oyu Tolgoi (or the availability of financing for OTLLC or the
Government of Mongolia to construct such a source) within the required contractual timeframe; sources of interim power;
OTLLC’s ability to operate sustainably, its community relations, and its social license to operate in Mongolia; the impact of
changes in, changes in interpretation to or changes in enforcement of, laws, regulations and government practises in
Mongolia; delays, and the costs which would result from delays, in the development of the underground mine; the anticipated
location of certain infrastructure and sequence of mining within and across panel boundaries; projected commodity prices and
their market demand; and production estimates and the anticipated yearly production of copper, gold and silver at the Oyu
Tolgoi underground mine.
Other risks, uncertainties and factors which could cause actual results, performance or achievements of Entrée to differ
materially from future results, performance or achievements expressed or implied by forward-looking information include,
amongst others, unanticipated costs, expenses or liabilities; discrepancies between actual and estimated production, mineral
reserves and resources and metallurgical recoveries; development plans for processing resources; matters relating to
proposed exploration or expansion; mining operational and development risks, including geotechnical risks and ground
conditions; regulatory restrictions (including environmental regulatory restrictions and liability); risks related to international
operations, including legal and political risk in Mongolia; risks related to the potential impact of global or national health
concerns; risks associated with changes in the attitudes of governments to foreign investment; risks associated with the
conduct of joint ventures, including the ability to access detailed technical, financial and operational information; risks related
to the Company’s significant shareholders, and whether they will exercise their rights or act in a manner that is consistent with
the best interests of the Company and its other shareholders; inability to upgrade Inferred mineral resources to Indicated or
Measured mineral resources; inability to convert mineral resources to mineral reserves; conclusions of economic evaluations;
fluctuations in commodity prices and demand; changing foreign exchange rates; the speculative nature of mineral exploration;
the global economic climate; dilution; share price volatility; activities, actions or assessments by Rio Tinto or OTLLC and by
government stakeholders or authorities including Erdenes Oyu Tolgoi LLC and 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,
strategic deposits, 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; 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; accidents, labour disputes and other risks
of the mining industry; global climate change; global conflicts; natural disasters; the impacts of civil unrest; the impacts of the
Ukraine conflict; breaches of the Company’s policies, standards and procedures, laws or regulations; trade tensions between
the world’s major economies; increasing societal and investor expectations, in particular with regard to environmental, social
and governance considerations; the impacts of technological advancements; title disputes; limitations on insurance coverage;
competition; loss of key employees; cyber security incidents; misjudgements in the course of preparing forward-looking
information; and 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, 2023, dated March 8, 2024 filed with the Canadian Securities
Administrators and available at www.sedarplus.ca. 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 information, 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 information will prove to be accurate, as actual results and future events could differ materially
from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking
information. The Company is under no obligation to update or alter any forward-looking information except as required under
applicable securities laws.