Entr�e Gold Closes Financing
Rio Tinto
Exercises Pre-Emptive Rights
Entr�e Gold Inc. (TSX:ETG; NYSE AMEX:EGI; Frankfurt:EKA
- "Entr�e" or the "Company") is pleased to announce that it
has closed its previously announced marketed offering of 10,000,000 shares at a
price of $1.25 per share. Rio Tinto Exploration Canada Inc. (�Rio Tinto�)
exercised its pre-emptive rights in full and purchased an additional 1,482,216
shares of the Company at a price of $1.25 per share. Total gross proceeds
from the offering are $14,352,770.
The syndicate of
underwriters, which was led by Desjardins Securities Inc. and included National
Bank Financial Inc., TD Securities Inc., Knight Capital Group and Trapeze
Capital Corp., received a cash commission equal to 6% of the gross proceeds
from the offering (excluding shares purchased by Rio Tinto pursuant to its
pre-emptive rights).
Entr�e�s President and
Chief Executive Officer, Greg Crowe, commented, �This financing puts Entr�e in
a stronger financial position at a time of global economic uncertainty, and
allows us to continue to advance our projects in Mongolia and Nevada. We
wish to express our appreciation for the continued support from our largest
shareholder, Rio Tinto.�
The net proceeds of the
Offering are expected to be used to fund ongoing exploration on the Company�s
Ann Mason project in Nevada and Shivee West project
in Mongolia, and for general corporate purposes. Please see the Company�s
prospectus supplement dated November 23, 2011 to the Company�s short form base
shelf prospectus dated November 19, 2010 filed on SEDAR at www.sedar.com for further details.
The common shares have not
been and will not be registered under the United States Securities Act of 1933,
as amended, or any state securities laws, and may not be offered or sold in the
United States or to, or for the benefit or account of any U.S. person, unless
exemptions from such registration requirements are available. This news release
shall not constitute an offer to sell or the solicitation of an offer to buy
these securities. There shall be no offer or sale of these securities in any
jurisdiction in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification of such securities
under the laws of any such jurisdiction.
ABOUT ENTR�E GOLD INC.
Entr�e Gold Inc. is a
Canadian mineral exploration company focused on the worldwide exploration and
development of copper and gold prospects. The Company�s flagship Lookout Hill
property in Mongolia completely surrounds the Oyu Tolgoi project of Oyu Tolgoi LLC, a subsidiary of Ivanhoe Mines and the
Government of Mongolia. A portion of the Lookout Hill property is subject to a
joint venture with Oyu Tolgoi
LLC. The joint venture property hosts the Hugo North Extension copper-gold
deposit and the Heruga copper-gold-molybdenum
deposit. Excellent exploration potential remains on the joint venture property
for the discovery of additional mineralized zones.
In North America, the
Company is exploring for porphyry-related copper systems in Nevada and New
Mexico. The primary asset is the Ann Mason property near Yerington, Nevada,
which hosts an inferred mineral resource estimate of 810 million tonnes grading 0.40% copper using a 0.30% copper cut-off,
containing approximately 7.1 billion pounds of copper. The property has
considerable potential, both to increase the size of the Ann Mason deposit and
to discover additional targets.
In addition to being a
politically stable jurisdiction, the Yerington copper camp has seen significant
historic copper production along with a resurgence of
exploration activity and now hosts over 20 billion pounds of copper in several
deposits owned by a diverse group of companies.
The Company is also seeking
additional opportunities to utilize its expertise in exploring for deep and/or
concealed ore deposits. Rio Tinto and Ivanhoe Mines are major shareholders of
Entr�e, holding approximately 13% and 11% of issued and outstanding shares,
respectively.
QUALIFIED PERSON
Robert Cann,
P.Geo.,
Entr�e�s Vice-President, Exploration, and a Qualified Person as defined by
National Instrument 43-101, has reviewed the technical information contained in
this release.