Entrée Resources (TSX:ETG) has closed an upsized, oversubscribed private placement to raise C$36.2 million ($37 million) to fund an updated technical report on the Entrée/Oyu Tolgoi joint venture (JV) in Mongolia.
The company issued around 12.49 million units at C$2.90 each for gross proceeds of C$36.2 million, after lifting the offering by C$4.3 million due to ‘strong’ demand. Each unit comprises one common share and one three-year warrant exercisable at C$3.95. The units carry a hold period expiring on 5 March 2027.
Net proceeds will support general corporate purposes, including the updated technical report, expanding operations in Mongolia, and potential obligations under its funding agreement with International Royalty Corporation.
Entrée holds a 20% or 30% carried participating interest in the JV covering part of the Oyu Tolgoi Copper-Gold Project, with major shareholders including Royal Gold (NASDAQ:RGLD) (23%) and Rio Tinto (ASX:RIO) (15%).
Entrée Resources is a Canadian company with a carried JV interest in part of the Oyu Tolgoi Project in Mongolia, one of the world’s largest copper-gold projects.
Write to Paula Fabe at Mining.com.au
Main image: Entrée Resources
