Entree Gold Inc (C-ETG) - News Release
Entree partners Ivanhoe, Rio Tinto exercise rights
2007-11-05 18:54 ET - News Release?Shares issued 79,079,201?ETG Close 2007-11-05 C$ 3.30
Mr. Greg Crowe reports
ENTREE GOLD ANNOUNCES FINANCING INCREASED TO $43,285,000Entree Gold Inc. has received confirmation that Ivanhoe Mines Ltd. and Rio Tinto, through its wholly owned subsidiary Kennecott Canada Exploration Inc., have elected to exercise their respective rights to participate in treasury offering announced in Stockwatch earlier today.
Ivanhoe Mines will acquire approximately 2,128,356 shares at $3.00 for proceeds of approximately $6,385,068 to maintain its ownership of approximately 14.8 per cent of Entree's issued and outstanding shares.
Rio Tinto will acquire approximately 2,300,284 shares at $3.00 for proceeds of approximately $6,900,852 to maintain its ownership of approximately 15.9 per cent of Entree's issued and outstanding shares.
Entree's president and chief executive officer, Greg Crowe, commented: "This bought deal financing represents a vote of confidence in Entree by the capital markets and by our strategic partners, Ivanhoe Mines and Rio Tinto. In a competitive marketplace, Entree, with its strengthened treasury, will be in an excellent position to seek and acquire additional complementary projects for the benefit of our shareholders.
This is the beginning of a new and exciting phase in the development of our company."
Entree entered into an agreement with BMO Nesbitt Burns Inc., earlier today on a bought deal basis, for the purchase of 10 million common shares of the company. The offering price is $3.00, representing proceeds of $30-million. This transaction is subject to receipt of all necessary regulatory and stock exchange approvals.
Closing is expected on or about Nov. 26, 2007.
Total proceeds to the company, after participation by Ivanhoe Mines and Rio Tinto, will be approximately $43,285,920. Upon conclusion of the financing, Entree's treasury will exceed $70-million.
Proceeds from this offering will be used for general corporate purposes, future exploration expenditures related to Lookout Hill, and to finance any future property acquisitions that the board of directors of the company deem appropriate. The company is actively looking to acquire and manage advanced projects which are complementary to its existing projects in Mongolia and the United States.
We seek Safe Harbor.