Business
Entrée Gold Announces Amendment to Sandstorm Agreement
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 1, 2016) - Entrée Gold Inc. (TSX:ETG) (NYSE MKT:EGI) (FRANKFURT:EKA) ("Entrée" or the "Company") announces tha
About this update from Entree Resources Ltd
[{"type":"text","content":" VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 1, 2016) - Entrée Gold Inc. (TSX:ETG) (NYSE MKT:EGI) (FRANKFURT:EKA) (\"Entrée\" or the \"Company\") announces that it has entered into an agreement with Sandstorm Gold Ltd. (TSX:SSL; NYSE MKT:SAND - \"Sandstorm\") to amend the Equity Participation and Funding Agreement dated February 14, 2013 (the \"2013 Agreement\"). The Agreement to Amend provides for a 17% reduction in the metal credits that Entrée is required to sell and deliver to Sandstorm under the 2013 Agreement. Concurrently, Entrée will refund a portion of the refundable deposit by paying US$5.5 million in cash and issuing US$1.3 million of common shares of the Company. At closing, the parties will enter into an Amended and Restated Equity Participation and Funding Agreement (the \"Restated Funding Agreement\"). The Agreement to Amend is expected to close on or about March 1, 2016. The Restated Funding Agreement amends Entrée's existing obligation to refund a portion of the remaining refundable deposit when and if certain events occur in the future, and provides Entrée with greater optionality in structuring any potential refund. Entrée will immediately benefit from greater control over its treasury and an increased ability to preserve cash. With a cash balance of US$25.5 million at the end of third quarter 2015, and extensive cost cutting measures completed over the past six months, Entrée is well positioned for the future. Stephen Scott, Entrée's Chief Executive Officer, said, \"We are very encouraged by recent news that final approvals and a formal 'notice to proceed' for the re-start of underground development at Oyu Tolgoi, including development of the first lift of the Entrée-Oyu Tolgoi LLC joint venture's Hugo North Extension deposit, is expected in Q2 2016. With this news, we consider this to be an opportune time to amend the 2013 Agreement and reduce our future obligation to sell metal credits to Sandstorm. At the same time, we are very pleased that Sandstorm has shown its ongoing support for Entrée and the Oyu Tolgoi project by acquiring additional shares of the Company.\" Upon closing of the transaction, Entrée will issue 5,128,604 common shares to Sandstorm at a price of C$0.3496 per share. The shares will be subject to a 4-month hold period. The price was calculated using the VWAP of Entrée's shares on th...