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Entree Gold Provides Mongolia Licences Update, Says Licences Not Cancelled, But Some Issues Must be Resolved

By: MT Newswires
Posted: 2/27/2013 11:38:00 AM
Referenced Stocks:

Entree Gold Inc. (ETG.TO) advises that, contrary to reports in the media, the Oyu Tolgoi LLC-Entree Gold joint venture mining licences have not been cancelled. The Company has today received official notification from the Mineral Resources Authority of Mongolia advising the Company that, while the joint venture mining licenses MV-15225A and MV-15226A have not been revoked, Order No. 167 issued on July 10, 2009 by the Ministry of Mineral Resources and Energy has been cancelled. This Order concerned the registration of reserves related to the joint venture deposits which is one step in the process to convert an exploration licence to a mining licence. Order No. 167 was not concerned with issuing of the mining licences.

The Company understands that the joint venture mining licenses MV-15225A and MV-15226A have been put under suspension for a temporary period. This suspension means that Entree is not allowed to sell or transfer the licences for the time being.

The Company believes it followed all Mongolian laws and regulations in conjunction with the issuance of the joint venture mining licenses. These licences were issued to Entree as a condition precedent to the Investment Agreement between Entree's joint venture partner Oyu Tolgoi LLC (formerly known as Ivanhoe Mines Mongolia XXK), Rio Tinto International Holdings Limited, Turquoise Hill Ltd. (formerly known as Ivanhoe Mines Ltd.) and the Government of Mongolia in October 2009.

To help ensure that this matter is resolved as soon as possible, the Company will work with Oyu Tolgoi LLC, who, as manager of the Oyu Tolgoi mining complex, is responsible for maintaining the licences in good order.