Ivanhoe Mines to participate in C$13.88 million Entrée Gold offering

By Sheri Kasprzak

Atlanta, June 27 - Ivanhoe Mines Ltd. said it will participate in Entrée Gold Inc.'s previously announced C$13,875,226 private placement.

The investment will allow Ivanhoe to maintain its existing percentage ownership of Entrée's stock.

The company has, in fact, increased its holdings in Entrée by exercising warrants for 4.6 million shares.

The exercise of warrants brings Ivanhoe's interest in Entrée to 9.2 million shares, or 16.4%.

The private placement, which was announced June 20, includes up to 6,306,921 units at C$2.20 each. 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 each for two years.

"We are pleased to receive this strong vote of confidence from Ivanhoe in the prospectivity of our properties, both within and outside the joint project area covered by the earn-in agreement," said Greg Crowe, Entrée's president and chief executive officer, in a statement.

"Ivanhoe has been a tremendous partner to date. Its management and staff have conducted an aggressive, professional evaluation of the Hugo North Extension mineralized system and the results have exceeded expectations."

Entrée is a Vancouver, B.C.-based gold exploration company and Ivanhoe is a Vancouver-based gold and copper acquisition, exploration and development company.

On Monday, Entrée's stock closed down C$0.20 at C$2.20 and Ivanhoe's stock closed down C$0.05 at C$9.00.

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