Vancouver – Mongolian-focused explorer Entre Gold (ETG-T, EGI-X) is looking to sell at least $30-million worth of stock to bolster its treasury.
The brokered deal is being underwritten by BMO Nesbitt Burns that will place 10 million shares at $3.00 apiece.
The offering could rise an additional 4.4 million shares should Ivanhoe Mines (IVN-T, IVN-N) and Rio Tinto (RTP-N, RIO-L) choose to exercise rights to participate in the financing and maintain its percentage ownership in the junior.
Ivanhoe and Rio Tinto own about 14.9% and 16.3% of Entre respectively.
Entre is partnered on its Lookout Hill copper-gold project in southeastern Mongolia with Ivanhoe that is currently in the development phase on its adjacent Oyu Tolgoi deposit.
Under an earn-in agreement inked in late-2004, Ivanhoe has recently acquired 51% interest in Entre’s Shivee Tolgoi (Lookout Hill) property after expenditures of US$20 million on the ground. Through further expenditures, bringing the total to US$35 million, Ivanhoe can boost its interest in Shivee Tolgoi to 70% plus hold 80% interest in minerals extracted below the sub-surface depth of 550 metres.
Drilling by Ivanhoe has encountered similar mineralization to its Hugo North deposit on Entre’s Copper Flats zone over at least 1,300 metres of strike. Copper Flats hosts an inferred resource of 190 million tonnes grading 1.57% copper and 0.53 gram gold per tonne based on a 0.6% copper equivalent cut-off grade.
Shares of Entre Gold have recently traded at the $3.30-level with the stock posting a 52-week trading range of $1.50-$3.67.
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