VANCOUVER, BC, May 26, 2022
/PRNewswire/ - 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