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June 4, 2010
News Release
Entr�e-PacMag
Schemes of Arrangement Overwhelmingly Supported
Vancouver, B.C., June 4, 2010 - Entr�e Gold Inc.
(TSX:ETG; NYSE AMEX:EGI;
Frankfurt:EKA � �Entr�e� or the �Company�) is pleased to announce that the
Shareholders and Optionholders of PacMag Metals Limited (ASX:PMH � �PacMag�)
have overwhelmingly voted in favour of implementing the Australian Schemes of
Arrangement (�Schemes�) as announced in November 2009. One hundred percent of
Optionholders and over ninety-nine percent of voting Shareholders supported
the acquisition of all outstanding PacMag shares and options by Entr�e.
The Second Court Hearing
in respect of the Schemes is scheduled for June 15, 2010. If approved by the
Court, the transaction is expected to be final on or about June 30, 2010,
subject to certain administrative issues and regulatory approvals.
Entr�e�s merger with
PacMag will bring into its portfolio several new properties in the United
States and Australia. These include:
- the Ann Mason copper-molybdenum property in Nevada, including the
Ann Mason deposit and the Blue Hills copper oxide target;
- the Sentinel uranium-lignite project in North Dakota;
- the Meadow Valley copper project in Arizona; the Rainbow Canyon
gold project in Nevada;
- the Blue Rose-Olary copper-gold-molybdenum Joint Venture in South
Australia;
- the Mystique Gold Joint Venture in Western Australia;
- the Northling Copper Joint Venture, in Western Australia.
The Ann Mason property is
the most advanced project, with the Ann Mason deposit containing a NI 43-101
compliant resource of 7.1 billion pounds of copper at the inferred level (810
million tonnes @ 0.40% Cu). The property also hosts the Blue Hills copper
oxide target, which potentially extends westward onto the ground held under
an agreement between Entr�e and HoneyBadger Exploration Inc. (TSX.V:TUF �
�HoneyBadger�) (see news release of July 23, 2009). Entr�e has also entered
into an agreement with Bronco Creek Exploration Inc. (a wholly-owned
subsidiary of Eurasia Minerals Inc. TSX.V:EMX � collectively �Bronco Creek�)
(see news release of September 25, 2009).
The Ann Mason deposit
forms part of the Yerington copper camp, where Anaconda Copper produced over
1.8 billion pounds of copper to the early 1980s. Activity in the area has
increased significantly in the past several years. Nevada Copper Corporation
is currently developing the Pumpkin Hollow deposit located approximately 15
kilometres southeast of the Ann Mason property, where they have outlined NI
43-101 compliant measured and indicated resources of 5.6 billion pounds of
copper. To the north of Ann Mason property, Quaterra Resources Inc. has been
drilling the MacArthur deposit and also owns the Bear Deposit and the former
producing Yerington Mine.
Greg Crowe, President and
CEO of Entr�e commented: �The PacMag acquisition, combined with existing
option agreements covering the adjoining HoneyBadger and Bronco Creek
properties, give Entr�e a strong presence in one of the few copper camps in
North America that is not dominated by a major mining group. Nevada is
generally ranked as one of the top jurisdictions worldwide for mineral
exploration and development. The combination of excellent location, existing
infrastructure, large inventory of defined copper resources and mining
history makes Yerington an attractive location for investment versus the less
politically stable and more remote locations of many other currently
undeveloped copper resources.�
Entr�e will begin
drilling on the HoneyBadger agreement area and work programs on the Bronco
Creek agreement area shortly. Exploration plans for the Ann Mason deposit and
Blue Hills target are being considered and will be announced and implemented
after the close of the Entree-PacMag merger.
ABOUT
ENTR�E GOLD INC.
Entr�e Gold Inc. is a
Canadian mineral exploration company focused on the worldwide exploration and
development of gold and copper prospects. The Company flagship property is in
Mongolia, where it holds two mining licences (Shivee Tolgoi and Javhlant) and
one exploration licence (Togoot). Lookout Hill completely surrounds the
8,500-hectare Oyu Tolgoi project of Ivanhoe Mines, and hosts the Hugo North
Extension copper-gold deposit and the Heruga copper-gold-molybdenum deposit. A
portion of the Shivee Tolgoi mining licence and the entirety of the Javhlant
mining licence are subject to a joint venture with Ivanhoe Mines, through its
subsidiary Oyu Tolgoi LLC (formerly known as Ivanhoe Mines Mongolia Inc. XXK
� �IMMI�).
Under the terms of the
joint venture, Entr�e is carried through to production, at its election, by
debt financing from Ivanhoe Mines with interest accruing at Ivanhoe Mines�
actual cost of capital or prime +2%, whichever is less, at the date of the
advance. Debt repayment may be made in whole or in part from (and only from)
90% of monthly available cash flow arising from its sale of product. Such
amounts will be applied first to payment of accrued interest and then to
repayment of principal. Available cash flow means all net proceeds of sale of
Entr�e�s share of products in a month less Entr�e�s share of costs of
operations for the month.
The Company continues to
explore its landholdings in Mongolia while also evaluating new opportunities
throughout eastern Asia. Entr�e is exploring the Huaixi copper project in
Zhejiang Province in China, under the terms of an agreement with the No. 11
Geological Brigade.
In North America, the
Company is exploring for porphyry-related copper systems in Arizona and New
Mexico under two agreements with Empirical Discovery LLC. In 2009, Entr�e
optioned two contiguous properties, Blackjack and Roulette, in the Yerington
porphyry copper district of Nevada through option agreements with HoneyBadger
Exploration Ltd. and Bronco Creek Exploration Inc.
In November 2009, Entr�e
announced an agreement with PacMag Metals Limited to implement Australian
Schemes of Arrangement to acquire all of the issued shares and options of
PacMag. PacMag holds the rights to land contiguous with the Blackjack and
Roulette properties and hosts the Ann Mason deposit. The shareholders and
optionholders of PacMag voted overwhelmingly in favour of the merger by
Schemes of Arrangement on June 4, 2010. The merger will be effective once
certain administrative issues and regulatory approvals are made, subject to
the outcome of the Second Court Hearing scheduled for June 15, 2010. In
British Columbia, Entr�e has the right to earn 100% interest in the early
stage copper-molybdenum Crystal property through an agreement with Taiga
Consultants Ltd.
The Company is also seeking
additional opportunities to utilize its expertise in exploring for deep
and/or concealed ore deposits. With a treasury of approximatelyC$38 million,
the Company is well funded for future activities.
Rio Tinto and Ivanhoe
Mines are major shareholders of Entr�e, holding approximately 15% and 14% of
issued and outstanding shares, respectively.
FURTHER INFORMATION
Monica Hamm, Manager,
Investor Relations
Entr�e Gold Inc.
Tel: 604-687-4777
Toll Free: 866-368-7330
E-mail: mhamm@Entr�egold.com
This News Release contains forward-looking statements. Forward-looking
statements are statements which relate to future events. In some cases, you
can identify forward-looking statements by terminology such as �may�, �should�,
�expects�, �plans�, �anticipates�, �believes�, �estimates�, �predicts�,
�potential� or �continue� or the negative of these terms or other comparable
terminology. These include, but are not limited to: timing for first
production; successful resolution of regulatory and administrative issues
related to the Schemes of Arrangement, the timing of commencement of full
construction of the Oyu Tolgoi Project; the estimated timing and cost of
bringing the Oyu Tolgoi Project into commercial production; anticipated
future production and cash flows; target milling rates; the ability of the
partners to arrange financing for construction of the Oyu Tolgoi Project; the
impact of amendments to the laws of Mongolia and other countries in which
Entr�e carries on business; and other statements that are not historical
facts. These statements are only predictions and involve known and unknown
risks, uncertainties and other factors that may cause our or our industry�s
actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance
or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements, and any assumptions upon which
they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost always
vary, sometimes materially, from any estimates, predictions, projections,
assumptions or other future performance suggested herein. Except as required
by applicable law, including the securities laws of the United States, the
Company does not intend to update any of the forward-looking statements to
conform these statements to actual results. Readers are referred to the
sections entitled �Risk Factors� in the Company�s periodic filings with the
British Columbia Securities Commission, which can be viewed at www.SEDAR.com,
and with the United States Securities and Exchange Commission, which can be
viewed at www.SEC.gov.
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Entr�e Gold Inc.
1201 - 1166 Alberni Street
Vancouver, BC
Canada V6E 3Z3
Telephone: (604) 687-4777
Facsimile: (604) 687-4770
Toll-free: 866-368-7330
info@entreegold.com
(TSX: ETG)
(NYSE Amex: EGI)
(Frankfurt: EKA)
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