Entree Gold Sais Licences Not Cancelled
Canadian miner Entree Gold Inc has announced that, contrary to reports in the media, the Oyu Tolgoi LLC-Entree Gold joint venture mining licences have not been cancelled.
The company said it received official notification from the Mineral Resources Authority of Mongolia (MRAM) on Tuesday informing them that the joint venture mining licenses MV-15225A and MV-15226A have not been revoked.
But the company has been notified that Order No. 167, issued by the Ministry of Mineral Resources and Energy on July 10, 2009, 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 into a mining licence. Order No. 167 was not concerned with the issuing of the mining licences.
Entree Gold 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 said that 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, Rio Tinto International Holdings Limited (Turquoise Hill Resources) and the Government of Mongolia in October 2009.
Under the joint venture, Entree retains a 20 percent interest in the production from the mining licences...
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