Entrée Gold announces fiscal year 2012 results

Apr 3 • Business, Mining, News • 659 Views • No Comments on Entrée Gold announces fiscal year 2012 results

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Entrée Gold Inc  has today filed its annual operational and financial results for the year ended December 31, 2012.  Greg Crowe, President and CEO commented, “The year 2012 was dominated by global economic contractions.  In spite of the fact that copper and gold prices remained relatively strong, the junior resource industry was hit particularly hard.  One of the major impacts of this contraction was that traditional financing sources for junior resource companies evaporated.    Entrée was successful in securing a financing package of approximately $55 million from Sandstorm Gold Ltd. (see news release of February 15, 2013) tied to two of Entrée’s main assets in Nevada and Mongolia. The equity private placement component of this financing resulted in Sandstorm becoming one of our largest shareholders.  This financing package provides an independent third party endorsement of our assets and has left Entrée in a strong financial position in these challenging economic times.

Greg Crowe further noted, “Ongoing issues between Rio Tinto and the Mongolian government, in this Presidential election year in Mongolia, have featured prominently in resource sector news.  Entrée, as a joint venture partner on a portion of the Oyu Tolgoi mining complex, has also experienced the negative effects of this uncertainty in Mongolia.  In February 2013, the Mineral Resources Authority of Mongolia (“MRAM”) temporarily suspended Entrée’s ability to sell or transfer the joint venture licenses that host the Hugo North Extension and Heruga deposits.  Entrée is in discussions with the Government of Mongolia, as well as Rio Tinto and Oyu Tolgoi LLC (“OTLLC”), regarding this matter. ”

For the year ended December 31, 2012, the Company incurred a net loss of US$15 Million compared to a net loss of US$17 Million for the year ended December 31, 2011.  The decrease in net loss is due to lower operating expenditures, primarily from decreased exploration expenses on the Ann Mason Project. In addition, a decreased loss from the Entrée-OT LLC joint venture property resulted in decreased losses from equity investee.

Source: Entrée Gold Inc

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