Business
Entrée Receives Green Light for Merger with PacMag Metals
Entrée Receives Green Light for Merger with PacMag Metals
About this update from Entree Resources Ltd
[{"type":"text","content":"\n\n\n\n Jun. 15, 2010 (Canada NewsWire Group) -- Entrée Gold Inc. (TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA - "Entrée" or the "Company") is pleased to announce that the Federal Court of Australia has approved the schemes of arrangement ("Schemes") between PacMag Metals Limited ("PacMag") and its shareholders and optionholders to effect a merger between PacMag and Entrée ("Transaction").\nAll conditions as set out in the Scheme Implementation Agreement have been satisfied and the Schemes are now unconditional. It is anticipated that the Court Orders approving the Schemes will be lodged with the Australian Securities and Investment Commission on June 16, 2010, which will be the date the Schemes become effective.\nThe Transaction is expected to close on June 30, 2010. The record date for determining PacMag shareholders and optionholders entitled to receive consideration under the terms of the Schemes is June 23, 2010.\n\nABOUT ENTRÉE GOLD INC.\n\nEntrée Gold Inc. is a Canadian mineral exploration company focused on the worldwide exploration and development of gold and copper prospects. The Company flagship property is in Mongolia, where it holds two mining licences (Shivee Tolgoi and Javhlant) and one exploration licence (Togoot). Lookout Hill completely surrounds the 8,500-hectare Oyu Tolgoi project of Ivanhoe Mines, and hosts the Hugo North Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit. A portion of the Shivee Tolgoi mining licence and the entirety of the Javhlant mining licence are subject to a joint venture with Ivanhoe Mines, through its subsidiary Oyu Tolgoi LLC (formerly known as Ivanhoe Mines Mongolia Inc. XXK - "IMMI").\nUnder the terms of the joint venture, Entrée is carried through to production, at its election, by debt financing from Ivanhoe Mines with interest accruing at Ivanhoe Mines' actual cost of capital or prime +2%, whichever is less, at the date of the advance. Debt repayment may be made in whole or in part from (and only from) 90% of monthly available cash flow arising from its sale of product. Such amounts will be applied first to payment of accrued interest and then to repayment of principal. Available cash flow means all net proceeds of sale of Entrée's share of products in a month les...