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ETG closed -17.47% on the announcement to C$1.37, 12c higher than offer price.
Entree Gold Prices Marketed Offering)(FRANKFURT:EKA) ("Entrée" or the "Company") has entered into an underwriting agreement today in connection with its previously announced marketed offering of common shares (the "Offering").
The underwriters have agreed to purchase 10,000,000 shares at a price of C$1.25 per share (the "Offering Price") for gross proceeds of C$12,500,000. The offering will be made under a prospectus supplement dated November 23, 2011 to the Company's short form base shelf prospectus dated November 19, 2010, in all provinces of Canada except Quebec. The Company has also granted the underwriters an over-allotment option to purchase up to an additional 1,500,000 common shares at the Offering Price, exercisable for a period of 30 days following closing. Desjardins Securities Inc. is the lead underwriter in a syndicate that includes National Bank Financial Inc., TD Securities Inc., Knight Capital Group and Trapeze Capital Corp.
As more fully described in the prospectus supplement, Rio Tinto Exploration Canada Inc. ("Rio Tinto") also has pre-emptive rights to purchase up to approximately 1,704,548 shares (assuming the exercise of the over-allotment option in full) from the Company at the Offering Price, in order to maintain its current 12.9% interest in the Company. It is not yet known whether Rio Tinto will exercise its pre-emptive rights.
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. Closing of the Offering will be subject to a number of conditions, including Toronto Stock Exchange and NYSE-Amex approval.
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.
November 23 (Feature: Forbes Asia Magazine dated December 5, 2011) Mongolia’s largest dairy firm--Suu Corp., dating from the Soviet era--is being transformed by the Dagvadorjs. Visitors don white coats and surgical masks, just like all the workers who operate the gleaming pasteurizing and packaging machines. Churning 200 tons of dairy products a day, they turn out everything from Spider-Man chocolate ice cream pops to fresh milk and dried curd that’s in demand from Britain to China.
The plant they bought opened in 1958 when individual herders were still bringing containers of milk into the city, where residents boiled it, hoping it was long enough and hot enough to kill bacteria. Max Group took over the plant, in part to keep it out of the hands of Russian oligarchs who wanted in on “privatization” in their former satellite. The brothers had bigger ideas.
“They saw a great potential here,” says Dugarjav Munkhjargal, the plant’s young executive director, the product of Bangalore University, a leading Indian business school. “They were telling me if a Russian wants it, it must be valuable. They’ve got a different mindset-- an entrepreneurial mind-set.”
It was clear to the Dagvadorjs that this could be another high-margin operation--a characteristic of every sector they’ve touched. The plant alone can do at least 15% net margins, they figure, but by adding satellites in remote locations--closer to the herds and to customers, such as in China--they can leverage their know-how. “They want to build this plant from a Russian to a very modern, up-to-date international standard factory, so now we have a team moving toward this.”
With a small public float on top of the family stake and no import duty on foreign machinery, Suu has been bringing in equipment and global expertise. After two years Munkhjargal has snagged an expansion loan from the World Bank’s International Finance Corp.--at a mere 9% rate (compared with the 13% that’s the going rate in Mongolia). Sales of $24 million are up from $1 million in 2005, and the staff size surged 70% in the past year. Time for more mechanization.
The Government’s policy covers the period until 2015, and calls for building refineries in the central, eastern, and western regions of the country. Building refineries in the central and eastern regions is feasible, but it will be more difficult in the western region, due to a lack of oil exploration there. The Government believes that building the refineries will be economical and keep fuel prices low.
But some members of the committee said that the refineries could import crude oil from abroad, and that would not keep fuel prices low. Fourteen companies are engaged in oil exploration in Mongolia, six of which are domestic companies.
November 22 (UB Post) The Mongolian population is 2.7 million and the domestic animals number is over 40 million. The numbers are explained because Mongolians are traditionally nomadic and for a very long time the basis of the economy was livestock breeding.
Mongolia also has another reason for the seemingly disproportional number, its neighbors Russia and China, which are the two biggest meat importing countries in the world, according to a report from the Mongolian Ministry of Food, Agriculture and Light Industry which was made in December 2010. Historically the two neighbors have high requests to import meat and meat products from Mongolia but the requests were limited due to the international hygiene standard. Since this year the meat and meat products export volume to these two countries has increased because Mongolian meat and meat products have improved to meet international hygiene standards.
Kh.Zoljargal, Vice Minister of Food, Agriculture and Light Industry made the Cooperation Agreement for Processed Meat with Pu Chan-chen, Vice President of the Ministry from General Administration of Quality Supervision, Inspection and Quarantine of China.
According to the agreement Mongolia will export mutton, goat meat, and wheat. Beef and horsemeat export from Mongolia is not decided yet and the two parties are studying the processing companies and taxes of those meats. According to the agreement, the Mongolian side will import chicken from China but pork will not be imported to Mongolia from China because the quarantine of pork is being continued.
Recently, Russia has announced that it will lift the quarantine on meat imports from Mongolia. The quarantine was created in response to contaminated livestock found in Mongolia in pervious years. Mongolia is preparing to export beef from 9,034 cows, horse meat from 11,434 horses and mutton from 3,226 sheep.
During the period of socialism, the importing volume of meat to Russia reached 40 000 tons but since 1990 the meat import volume has been reduced.Russia has a high interest in importing more meat from Mongolia and it seems the volume of imported meat will increase dramatically.
-12.4 thousand tons beef and horsemeat to Russia
-8.1 thousand tons meat of goat, horsemeat and mutton to Vietnam
-2 thousand tons of mutton and goat meat to Iran
-1.3 thousand tons of horsemeat to China
In the last five years, the Mongolian livestock number is increasing and reached 45 million this year. Mongolia has the capacity to prepare 100 thousand tons of meat but is using just 15 percent of capacity, said the Ministry of Food Agriculture and Light Industry.
The meat and meat production in Mongolia is considered the natural and organic. Raising livestock is practical because of the extensive grasslands. The harsh, dry climate makes most forms of agriculture impossible, less than one percent of the land is under cultivation. Traditional pastoral livestock raising and intensive sedentary livestock raising involving the processing of meat and dairy products has been developed.
Pastoral livestock raising is a sustainable industry using grass resources and requiring little or no input, whereas the tillage or dairy farming requires a form of agriculture. Hog raising and poultry farming require large amounts of operating funds for heating, water and fodder, and sophisticated management skills, including marketing and technology.
In the last year, 22 meat processing industries were monitored for the international hygiene standards and 18 of them were valued “AA” rate (license to export their processed meat and meat production under the country’s criteria) and three meat processing industries were valued “AAA” (met those industries operate with international hygiene standards and have the right to export their meat and meat production to international market)
The Mongolian meat processing industry consists of factories with their own slaughterhouses. These small businesses engaged activities ranging from the production of freshly cut meat to the production of sausages and canned meats.
November 22 (news.mn) Russian officials recently informed Mongolia’s Ministry of Food, Agriculture and Light Industry that Russia has lifted its ban on the import of meat and meat products from Mongolia.
A 59.9-km road from Khanuin Gol Bridge to Khalzan Burgedei Mtn. in Undur-Ulaan soum; a 37.6-km road between Khanuin Gol Bridge and Ikh Tamir soum; and a 29.9-km road connecting Kharkhoring and Tsetserleg cities were all opened. The roads are seven meters wide and have a daily capacity of 2,500 vehicles.
Minister for Road, Transportation and Urban Development Kh.Battulga told our correspondent that 1,100 to 1,200 km of new roads have been completed this year, including a 610-km road from Ulaanbaatar to Arkhangai aimag. Road construction work to connect the capital with western aimags will continue in the future.
The Minister said that price increases in imported road construction materials have increased the cost of building one km of road to between MNT 420 and 460 million, according to research. Also, he said new road construction work needs to take into account the needs of mining companies, which have vehicles weighing 60 tons, or even 100 or 120 tons, using roads.
November 23 (news.mn) The Standing Committee on Budget approved on Tuesday a proposed agreement between the Government and the Asian Development Bank (ADB) to build a 743.1 km road in western Mongolia. The proposed agreement now goes to the Standing Committee on Security and Foreign Policy.
The Government and the ADB have agreed to resume construction with a USD 170 million, 32-year loan from the bank. The Government will also allocate money for the project and will borrow money from China for it as well.
The Secretary State of the Ministry of Road, Transportation and Urban Development explained that ADB has made it a priority to invest in road construction projects to connect Asia, and a road through the Altai mountains has been determined to be vital. The official added that the Yarant border point is the main point connecting Russia and China, although the Zamiin-Uud border point is larger.
Deputy Minister for Food, Agriculture and Light Industry J.Saule said that 70 percent of Mongolia’s pastureland has been degraded. She noted that Mongolia had 90,000 herders and 25 million heads of livestock in 1990 when Mongolia transferred to a market society. Now the nation has 160,000 herders and 37.2 million heads of livestock. J.Saule said pastureland has been damaged due to the irresponsible activities of mining companies and illegal “ninja” mining operations. Pastureland has been reduced by nine million hectares in recent years. But Parliament has postponed discussion of a draft law on pastureland that has been submitted by the Government. Parliament believes the draft law needs to be improved.
November 23 (news.mn) Following the appointment of B.Khurts to be the Anti-Corruption Authority’s new deputy chief, President Ts.Elbegdorj has appointed a new administration chief at the National Security Council (NSC).
B.Baatarzorig supported the firm’s suggestion and said construction should begin as soon as possible. If the plant is built, B.Baatarzorig said, its outputs could replace raw materials that are currently imported.