By Sheri Kasprzak
Atlanta, June 20 - Entrée Gold Inc. said it plans to raise up to C$13,875,226 in a private placement.
The company plans to sell up to 6,306,921 units at C$2.20 each. The deal is being conducted with Kennecott Canada Exploration Inc., a subsidiary of Rio Tinto plc, a company that plans to acquire a 9.9% equity position in Entrée.
The units are comprised of one share, one half-share A warrant and one half-share B warrant. The whole A warrants allow for an additional share at C$2.75 each for two years, and the whole B warrants allow for an additional share at C$3.00 each for two years.
The offering is expected to wrap in two tranches, the first for 5,665,730 units sold to Kennecott. The second tranche, for up to 1,235,489 units, will be sold to Ivanhoe Mines Ltd. if it exercises its right to maintain its existing percentage ownership of Entrée's stock.
Based in Vancouver, B.C., Entrée is a gold exploration company.
| Issuer: | Entrée Gold Inc.
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| Issue: | Units of one share, one half-share A warrant, one half-share B warrant
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| Amount: | C$13,875,226 (maximum)
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| Units: | 6,306,921 (maximum)
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| Price: | C$2.20
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| Warrants: | One half-share A warrant per unit; one half-share B warrant per unit
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| Warrant expiration: | Two years
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| Warrant strike price: | C$2.75 for A warrants; C$3.00 for B warrants
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| Investors: | Kennecott Canada Exploration Inc.; Ivanhoe Mines Ltd.
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| Pricing date: | June 20
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| Stock price: | C$2.40 at close June 20
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