Entrée Resources Wins Arbitration Decision
Entrée Resources (TSX:ETG; OTCQB:ERLFF) has won a significant arbitration decision against Oyu Tolgoi (OTLLC) and Turquoise Hill Resources The three-member international arbitration Tribunal ruled in Entrée's favor on all issues and dismissed the Respondents' counterclaims. The Tribunal's binding declarations establish that OTLLC must: provide an executed Joint Venture Agreement (JVA), facilitate the transfer of the Shivee Tolgoi and Javhlant mining licenses, and cover Entrée's 20% share of taxes and fees as a loan under the JVA. The decision provides certainty for Oyu Tolgoi project stakeholders and supports keeping Lift 1 Panel 1 development work on schedule.
Entrée Resources (TSX:ETG; OTCQB:ERLFF) ha vinto una significativa decisione arbitrale contro Oyu Tolgoi (OTLLC) e Turquoise Hill Resources. Il Tribunale arbitrale internazionale composto da tre membri ha emesso un giudizio favorevole ad Entrée su tutte le questioni e ha respinto le contropretese dei convenuti. Le dichiarazioni vincolanti del Tribunale stabiliscono che OTLLC deve: fornire un Accordo di Joint Venture (JVA) esecutivo, facilitare il trasferimento delle licenze minerarie di Shivee Tolgoi e Javhlant, e coprire la quota del 20% di tasse e oneri di Entrée come prestito ai sensi del JVA. La decisione offre certezza agli stakeholder del progetto Oyu Tolgoi e supporta il mantenimento del programma di sviluppo del Lift 1 Panel 1.
Entrée Resources (TSX:ETG; OTCQB:ERLFF) ha ganado una decisión de arbitraje significativa contra Oyu Tolgoi (OTLLC) y Turquoise Hill Resources. El Tribunal de arbitraje internacional de tres miembros falló a favor de Entrée en todas las cuestiones y desestimó las contrademandas de los demandados. Las declaraciones vinculantes del Tribunal establecen que OTLLC debe: proporcionar un Acuerdo de Joint Venture (JVA) ejecutado, facilitar la transferencia de las licencias mineras de Shivee Tolgoi y Javhlant, y cubrir el 20% de la participación de Entrée en impuestos y tasas como un préstamo bajo el JVA. La decisión aporta certeza a las partes interesadas del proyecto Oyu Tolgoi y apoya mantener el trabajo de desarrollo de Lift 1 Panel 1 según lo programado.
Entrée Resources (TSX:ETG; OTCQB:ERLFF)는 Oyu Tolgoi (OTLLC)와 Turquoise Hill Resources에 대해 중요한 중재 판결을 승소했습니다. 세 명의 국제 중재 재판소는 모든 쟁점에 대해 Entrée에게 유리한 판결을 내렸으며, 피고측의 반소를 기각했습니다. 재판소의 구속력 있는 선언은 OTLLC가 다음을 수행해야 한다고 명시합니다: 실행된 공동 투자 계약서(JVA)를 제공하고, Shivee Tolgoi 및 Javhlant 광산 라이센스의 이전을 용이하게 하며, JVA에 따라 Entrée의 20% 세금 및 수수료를 대출로 전환해야 합니다. 이 결정은 Oyu Tolgoi 프로젝트 이해관계자에게 확실성을 제공하고 Lift 1 Panel 1의 개발 작업을 예정대로 유지하는 데 도움을 줍니다.
Entrée Resources (TSX:ETG; OTCQB:ERLFF) a remporté une décision d'arbitrage significative contre Oyu Tolgoi (OTLLC) et Turquoise Hill Resources. Le Tribunal international d'arbitrage composé de trois membres a rendu son verdict en faveur d'Entrée sur tous les points et a rejeté les contre-claims des défendeurs. Les déclarations contraignantes du Tribunal stipulent qu'OTLLC doit : fournir un Accord de coentreprise (JVA) exécuté, faciliter le transfert des licences minières de Shivee Tolgoi et Javhlant, et couvrir les 20 % de la part d'Entrée dans les taxes et frais sous forme de prêt conformément au JVA. La décision apporte une certitude aux parties prenantes du projet Oyu Tolgoi et soutient le maintien du travail de développement de Lift 1 Panel 1 dans les délais.
Entrée Resources (TSX:ETG; OTCQB:ERLFF) hat eine bedeutende Schiedsgerichtentscheidung gegen Oyu Tolgoi (OTLLC) und Turquoise Hill Resources gewonnen. Das dreiköpfige internationale Schiedsgericht entschied in allen Fragen zugunsten von Entrée und wies die Gegenansprüche der Beklagten zurück. Die verbindlichen Erklärungen des Schiedsgerichts legen fest, dass OTLLC Folgendes tun muss: einen ausgeführten Joint Venture Vertrag (JVA) bereitstellen, die Übertragung der Bergbaulizenzen für Shivee Tolgoi und Javhlant erleichtern und Entrées 20% anteilige Steuern und Gebühren als Darlehen im Rahmen des JVA übernehmen. Die Entscheidung schafft Sicherheit für die Projektbeteiligten von Oyu Tolgoi und unterstützt die planmäßige Durchführung der Entwicklungsarbeiten für Lift 1 Panel 1.
- Won arbitration case against joint venture partners on all issues
- Secured legal confirmation of OTLLC's obligation to execute Joint Venture Agreement
- Confirmed OTLLC must facilitate mining license transfers
- OTLLC required to cover Entrée's 20% share of transfer taxes and fees as a loan
- None.
VANCOUVER, British Columbia, Dec. 19, 2024 (GLOBE NEWSWIRE) -- Entrée Resources Ltd. (TSX:ETG; OTCQB:ERLFF – the “Company” or “Entrée”) is pleased to announce that today a partial final award (the “Award”) was made by the three-member international arbitration Tribunal appointed in connection with the Company’s binding arbitration proceedings against its joint venture partner Oyu Tolgoi LLC (“OTLLC”) and Turquoise Hill Resources Ltd. (together, the “Respondents”). The Tribunal has ruled in favor of Entrée on all issues and dismissed the Respondents’ counterclaims.
Stephen Scott, the Company’s President & CEO commented, “This Award represents a tremendous outcome for the Company and provides much needed certainty for all Oyu Tolgoi project stakeholders as we endeavor to keep Lift 1 Panel 1 development work on schedule.”
The Company commenced proceedings on May 26, 2022, to seek declarations and orders for specific performance relating to certain provisions of the amended 2004 Equity Participation and Earn-in Agreement (the “Earn-in Agreement”) and Joint Venture Agreement (the “JVA”) with OTLLC. The Tribunal issued final and binding declarations that:
- OTLLC is obligated to provide to Entrée an executed copy of the JVA, in the form appended to the Earn-in Agreement, subject only to any amendments to its terms that Entrée and OTLLC mutually agree;
- OTLLC is obligated to facilitate and accept the transfer of the Shivee Tolgoi and Javhlant mining licenses (the “Licenses”) for the Entrée/Oyu Tolgoi joint venture as required by the JVA; and
- Any taxes and fees assessed on the transfer of the Licenses are subject to the terms of the JVA, with OTLLC contributing Entrée’s
20% share as a loan under Section 10.1 of the JVA.
The Tribunal also reserved Entrée’s claims for specific performance, and in the alternative equitable damages, and the issue of costs, to a subsequent award.
The Company is currently considering potential next steps and will update the market in due course.
ABOUT ENTRÉE RESOURCES LTD.
Entrée Resources Ltd. is a well-funded Canadian mining company with a unique carried joint venture interest on a significant portion of one of the world’s largest copper-gold projects – the Oyu Tolgoi project in Mongolia. Entrée has a
FURTHER INFORMATION
David Jan
Investor Relations
Entrée Resources Ltd.
Tel: 604-687-4777 | Toll Free: 1-866-368-7330
E-mail: djan@EntreeResourcesLtd.com
This News Release contains forward-looking information within the meaning of applicable Canadian securities laws with respect to corporate strategies and plans; requirements for additional capital; uses of funds and projected expenditures; arbitration proceedings, including the potential benefits, timing and outcome of arbitration proceedings; the effect an arbitration decision may have on a commercial resolution of matters related to the JVA; the ability of the parties to reach a commercial resolution of matters related to the JVA; the Company’s ability to transfer the Shivee Tolgoi and Javhlant mining licences to OTLLC either in conjunction with finalization and execution of an alternative agreement(s) with OTLLC, or enforcement of certain provisions of the Earn-in Agreement and JVA pursuant to binding arbitration proceedings; timing and status of Oyu Tolgoi underground development; the expected timing of development work on the Shivee Tolgoi mining licence and the potential for delay if the Shivee Tolgoi mining licence cannot be transferred to OTLLC in a timely fashion; the nature of the ongoing relationship and interaction between OTLLC and Rio Tinto and the Government of Mongolia and Erdenes Oyu Tolgoi LLC with respect to the continued operation and development of Oyu Tolgoi; discussions with the Government of Mongolia, Erdenes Oyu Tolgoi LLC, Rio Tinto, and OTLLC on a range of issues including Entrée’s interest in the Entrée/Oyu Tolgoi joint venture property, the Shivee Tolgoi and Javhlant mining licences and certain material agreements; potential actions by the Government of Mongolia with respect to the Shivee Tolgoi and Javhlant mining licences and Entrée’s interest in the Entrée/Oyu Tolgoi joint venture property; plans for future exploration and/or development programs and budgets; permitting time lines; anticipated business activities; proposed acquisitions and dispositions of assets; and future financial performance.
In certain cases, forward-looking information can be identified by words such as "plans", "expects" or "does not expect", "is expected", "budgeted", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate" or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". While the Company has based this forward-looking information on its expectations about future events as at the date that such information was prepared, the information is not a guarantee of Entrée’s future performance and is based on numerous assumptions regarding present and future business strategies; the correct interpretation of agreements, laws and regulations; the commencement and conclusion of arbitration proceedings, including the potential benefits, timing and outcome of arbitration proceedings; the potential benefits, timing and outcome of discussions with the Government of Mongolia, Erdenes Oyu Tolgoi LLC, OTLLC, and Rio Tinto; the future ownership of the Shivee Tolgoi and Javhlant mining licences; that the Company will continue to have timely access to detailed technical, financial, and operational information about the Entrée/Oyu Tolgoi joint venture property, the Oyu Tolgoi project, and government relations to enable the Company to properly assess, act on, and disclose material risks and opportunities as they arise; local and global economic conditions and the environment in which Entrée will operate in the future, including commodity prices, projected grades, projected dilution, anticipated capital and operating costs, including inflationary pressures thereon resulting in cost escalation, and anticipated future production and cash flows; the anticipated location of certain infrastructure and sequence of mining within and across panel boundaries; the construction and continued development of the Oyu Tolgoi underground mine; the status of Entrée’s relationship and interaction with the Government of Mongolia, Erdenes Oyu Tolgoi LLC, OTLLC, and Rio Tinto; and the Company’s ability to operate sustainably, its community relations, and its social licence to operate.
With respect to the construction and continued development of the Oyu Tolgoi underground mine, important risks, uncertainties and factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking information include, amongst others, the current economic climate and the significant volatility, uncertainty and disruption arising in connection with the Ukraine conflict; the nature of the ongoing relationship and interaction between OTLLC, Rio Tinto, Erdenes Oyu Tolgoi LLC and the Government of Mongolia with respect to the continued operation and development of Oyu Tolgoi; the continuation of undercutting in accordance with the mine plans and designs in OTFS23; applicable taxes and royalty rates; the future ownership of the Shivee Tolgoi and Javhlant mining licences; the amount of any future funding gap to complete the Oyu Tolgoi project and the availability and amount of potential sources of additional funding; the timing and cost of the construction and expansion of mining and processing facilities; inflationary pressures on prices for critical supplies for Oyu Tolgoi resulting in cost escalation; the ability of OTLLC or the Government of Mongolia to deliver a domestic power source for Oyu Tolgoi (or the availability of financing for OTLLC or the Government of Mongolia to construct such a source) within the required contractual timeframe; sources of interim power; OTLLC’s ability to operate sustainably, its community relations, and its social licence to operate in Mongolia; the impact of changes in, changes in interpretation to or changes in enforcement of, laws, regulations and government practises in Mongolia; delays, and the costs which would result from delays, in the development of the underground mine; the anticipated location of certain infrastructure and sequence of mining within and across panel boundaries; projected commodity prices and their market demand; and production estimates and the anticipated yearly production of copper, gold and silver at the Oyu Tolgoi underground mine.
Other risks, uncertainties and factors which could cause actual results, performance or achievements of Entrée to differ materially from future results, performance or achievements expressed or implied by forward-looking information include, amongst others, unanticipated costs, expenses or liabilities; discrepancies between actual and estimated production, mineral reserves and resources and metallurgical recoveries; development plans for processing resources; matters relating to proposed exploration or expansion; mining operational and development risks, including geotechnical risks and ground conditions; regulatory restrictions (including environmental regulatory restrictions and liability); risks related to international operations, including legal and political risk in Mongolia; risks related to the potential impact of global or national health concerns; risks associated with changes in the attitudes of governments to foreign investment; risks associated with the conduct of joint ventures, including the ability to access detailed technical, financial and operational information; risks related to the Company’s significant shareholders, and whether they will exercise their rights or act in a manner that is consistent with the best interests of the Company and its other shareholders; inability to upgrade Inferred mineral resources to Indicated or Measured mineral resources; inability to convert mineral resources to mineral reserves; conclusions of economic evaluations; fluctuations in commodity prices and demand; changing foreign exchange rates; the speculative nature of mineral exploration; the global economic climate; dilution; share price volatility; activities, actions or assessments by Rio Tinto or OTLLC and by government stakeholders or authorities including Erdenes Oyu Tolgoi LLC and the Government of Mongolia; the availability of funding on reasonable terms; the impact of changes in interpretation to or changes in enforcement of laws, regulations and government practices, including laws, regulations and government practices with respect to mining, foreign investment, strategic deposits, royalties and taxation; the terms and timing of obtaining necessary environmental and other government approvals, consents and permits; the availability and cost of necessary items such as water, skilled labour, transportation and appropriate smelting and refining arrangements; unanticipated reclamation expenses; changes to assumptions as to the availability of electrical power, and the power rates used in operating cost estimates and financial analyses; changes to assumptions as to salvage values; ability to maintain the social licence to operate; accidents, labour disputes and other risks of the mining industry; global climate change; global conflicts; natural disasters; the impacts of civil unrest; the impacts of the Ukraine conflict; breaches of the Company’s policies, standards and procedures, laws or regulations; trade tensions between the world’s major economies; increasing societal and investor expectations, in particular with regard to environmental, social and governance considerations; the impacts of technological advancements; title disputes; limitations on insurance coverage; competition; loss of key employees; cyber security incidents; misjudgements in the course of preparing forward-looking information; and those factors discussed in the Company’s most recently filed MD&A and in the Company’s Annual Information Form for the financial year ended December 31, 2023, dated March 8, 2024 filed with the Canadian Securities Administrators and available at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company is under no obligation to update or alter any forward-looking information except as required under applicable securities laws.
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