Business
Entrée - PacMag Business Combination Doubles Copper Resources
Entrée - PacMag Business Combination Doubles Copper Resources
About this update from Entree Resources Ltd
[{"type":"text","content":"\n\n\n\nNov. 29, 2009 (Canada NewsWire Group) -- VANCOUVER, Nov. 29 /CNW/ -- Entrée Gold Inc. (TSX:ETG; NYSE Amex:EGI; Frankfurt:EKA - \"Entrée\" or the \"Company\") announces that it has entered into a definitive agreement with PacMag Metals Limited (ASX:PMH - \"PacMag\") to implement Australian Schemes of Arrangement to acquire all of the issued shares and options of PacMag.PacMag has a 100% interest in the Ann Mason Project located near Yerington, Nevada, which hosts the Ann Mason copper-molybdenum porphyry deposit. This deposit has a Joint Ore Reserves Committee (\"JORC\") compliant inferred resource of 810 million tonnes grading 0.40% copper and 0.004% molybdenum at a 0.30% copper cut-off grade, estimated to contain more than 7.1 billion pounds copper. The project is contiguous with the HoneyBadger and Bronco Creek properties recently optioned by Entrée (see news releases from July 23 and September 25, 2009). PacMag owns several other assets in the US and Australia.The transaction values PacMag at approximately CAD$47 million (AUD$49 million)(1). Consideration will be payable with a combination of Entrée shares and cash. Each PacMag shareholder will receive approximately 0.102 Entrée shares and CAD$0.041 (AUD$0.043) cash for each PacMag share. In addition, Entrée will acquire all of the outstanding PacMag options for aggregate consideration of approximately 294,000 shares and CAD$343,500. The aggregate consideration payable by Entrée for all of the PacMag shares and options will be approximately 15 million Entrée shares and CAD$6,343,500.The Directors of PacMag have informed Entrée that, in the absence of a superior proposal and subject to an independent expert concluding that the Scheme is in the best interests of PacMag shareholders, they will unanimously recommend that PacMag shareholders vote in favour of the proposed Scheme and all directors intend to vote their shareholdings (including option holdings) in favour of the Scheme.Greg Crowe, Entrée's President & CEO, stated, \"The business combination with PacMag complements our current copper-gold resources in Mongolia, consolidates our exploration and development position in the highly prospective, under-explored Yerington Camp in Nevada, and brings under the Entrée umbrella a sizeable copper and molybdenum inventor...