Entrée Resources Commences Arbitration to Enforce Certain Outstanding JV Provisions
ENTRÉE RESOURCES COMMENCES ARBITRATION TO ENFORCE
CERTAIN OUTSTANDING JV PROVISIONS
VANCOUVER, BC
,
May 26, 2022
/CNW/ - Entrée Resources Ltd. (TSX: ETG) (OTCQB: ERLFF) (the "
Company
" or "
Entrée
") announces that it
has commenced binding arbitration proceedings to seek declarations and orders for specific performance relating to certain provisions of the
Equity Participation and Earn-in Agreement (the "
Earn-in Agreement
") with Turquoise Hill Resources Ltd. ("
Turquoise Hill
") dated
October 15,
2004
, as amended and subsequently assigned to Oyu Tolgoi LLC ("
OTLLC
") and the Joint Venture Agreement appended to the Earn-in
Agreement (the "
JVA
"). The parties have been operating under the JVA's terms since OTLLC completed its earn-in obligations on the Entrée/Oyu
Tolgoi joint venture property in
Mongolia
in 2008. Both Turquoise Hill and OTLLC are respondents to the arbitration proceedings.
The commencement of arbitration proceedings follows ongoing discussions with Rio Tinto International Holdings Ltd. ("
Rio Tinto
") and Turquoise
Hill regarding the potential for finalization and execution of an amended JVA. As previously disclosed, the Company's primary objective has been
to advance amendments that it believes align the interests of all stakeholders as they are now understood, and upon finalization and execution,
confirm the transfer of the Shivee Tolgoi and Javhlant mining licences to OTLLC as manager of the Entrée/Oyu Tolgoi joint venture. While the
Company remains committed to continuing discussions with Rio Tinto and Turquoise Hill, the Company's Board of Directors has concluded that
absent near-term prospects for a finalized agreement, the Earn-in Agreement and JVA must be enforced without further delay.
The arbitration is being commenced in
Vancouver, British Columbia
under the
International Commercial Arbitration Act
(
British Columbia
). The
Company will provide updates on the arbitration as developments warrant.
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% or 30% carried participating interest in the
Entrée/Oyu Tolgoi joint venture, depending on the depth of mineralization. Sandstorm Gold, Rio Tinto and Turquoise Hill are major shareholders of
Entrée, holding approximately 25%, 9% and 7% 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;
the arbitration proceedings, including the potential benefits, timing and outcome of the arbitration proceedings; discussions with Entrée/Oyu
Tolgoi joint venture stakeholders on a range of issues including Entrée's interest in the Entrée/Oyu Tolgoi joint venture property, the Shivee
Tolgoi and Javhlant mining licences and certain material agreements; the Company's plans to continue discussions with Rio Tinto and
Turquoise Hill regarding potential amendments to the JVA; anticipated business activities; and future financial performance.
In certain cases, forward-looking statements and 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 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 the commencement and conclusion of the arbitration proceedings, including the potential benefits, timing and outcome of the
arbitration proceedings; present and future business strategies; the correct interpretation of agreements, laws and regulations; local and global
economic conditions and negotiations and the environment in which Entrée will operate in the future, including commodity prices, projected
grades, projected dilution, anticipated capital and operating costs, 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
, OTLLC, Rio Tinto and Turquoise
Hill; and the Company's ability to operate sustainably, its community relations and its social licence to operate.
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 statements and 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, including the COVID-19 pandemic; risks associated with changes in the attitudes of
governments to foreign investment; risks associated with the conduct of joint ventures; 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, Turquoise Hill or 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; 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
licence to operate; accidents, labour disputes and other risks of the mining industry; global climate change; global conflicts; title disputes;
limitations on insurance coverage; competition; loss of key employees; cyber security incidents; misjudgements in the course of preparing
forward-looking statements; 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, 2021
, dated
March 25, 2022
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
.
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SOURCE
Entrée Resources
View original content:
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%SEDAR: 00008502E
For further information:
David Jan, Investor Relations, Entrée Resources Ltd., Tel: 604-687-4777 | Toll Free: 1-866-368-7330, E-mail:
CO: Entrée Resources
CNW 07:30e 26-MAY-22