Entree Gold (TSX:ETG) reported and filed its interim operations and financial results for the quarter: as at June 30, 2015, the Company reported a working capital of US$27,346,585, including cash of US$27,375,691.
Entree Gold (TSX:ETG) reported and filed its interim operations and financial results for the quarter: as at June 30, 2015, the Company reported a working capital of US$27,346,585, including cash of US$27,375,691. Entree Gold also highlighted that an updated Preliminary Economic Assessment for the Ann Mason deposit in Nevada is expected to be completed by the end of September, and that signing of project financing for Oyu Tolgoi project in Mongolia is expected by the end of 2015.
As quoted in the press release:
The Company’s technical team is currently incorporating the results of the infill drilling program conducted earlier this year at Ann Mason into an updated resource estimate. This resource estimate, along with preliminary results from the latest metallurgical testing program, will be incorporated into an updated Preliminary Economic Assessment expected to be complete by the end of September.
On May 18, 2015, Turquoise Hill Resources Ltd.(“Turquoise Hill”), Rio Tinto and the Government of Mongolia jointly announced the execution of the Oyu Tolgoi Underground Mine Development and Financing Plan (the “Mine Plan”). In addition to addressing outstanding Oyu Tolgoi LLC (“OTLLC”) shareholder matters, the Mine Plan confirms the project cost for Oyu Tolgoi’s initial construction and development and reinforces the principles set out in the Oyu Tolgoi Investment Agreement and the Amended and Restated Shareholders Agreement, which governs the relationship among OTLLC shareholders.
On July 15, 2015, Turquoise Hill stated that it and Rio Tinto are advancing Oyu Tolgoi project financing and updating the underground feasibility study. Turquoise Hill further stated that it continues to expect signing of project financing by the end of 2015.
For the three months ended June 30, 2015, the Company incurred a net loss of US$3,049,021 (US$0.02 per share) compared to a net loss of US$2,925,791 (US$0.02 per share) for the three months ended June 30, 2014. For the six months ended June 30, 2015, the Company incurred a net loss of US$3,609,699 (US$0.02 per share) compared to a net loss of US$4,205,776 (US$0.03 per share) for the six months ended June 30, 2014.
As at June 30, 2015, the Company had working capital of US$27,346,585, including cash of US$27,375,691.
During the three months ended June 30, 2015, the Company incurred higher operating expenditures primarily due to higher exploration costs, partially offset by lower general and administration expenses, lower consultancy and advisory fees and lower foreign exchange losses.
Entrée Gold President and CEO, Greg Crowe, said:
“A critical development during the second quarter of 2015 was the joint announcement on May 18 that the Government of Mongolia, Oyu Tolgoi LLC, Turquoise Hill Resources Ltd. and Rio Tinto had signed the Oyu Tolgoi Underground Mine Development and Financing Plan. This agreement addresses outstanding Oyu Tolgoi LLC shareholder matters and provides a pathway forward to the eventual restart of Phase 2 underground development, including Lift 1 of the Entrée-OTLLC joint venture’s Hugo North Extension deposit.”
“Subsequent to the end of the quarter, we signed a binding letter of intent to acquire a 0.5% net smelter returns royalty on Candente Copper Corp.’s Cañariaco project in Peru for US$500,000. Like our Ann Mason deposit in Nevada, Cañariaco Norte is a large scale, open pittable, long life porphyry copper deposit, which we believe is well positioned for eventual development.”
“Entrée remains focused on expanding its portfolio of high quality copper and gold assets in mining friendly jurisdictions, and is actively evaluating several potential opportunities.”
Also subsequent to the end of the quarter, Anna Stylianides was appointed to Entrée’s board of directors. Mr. Crowe added, “Ms. Stylianides has a strong background in finance and operations and is a welcome addition to our board.”