Entree Resources Ltd. (TSX:ETG): announcements explained, share price

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

11 July 2005capital raising announcement▲ GoodMajor

The private placement announced in June closed on July 7, 2005: 7,542,410 units at CDN$2.20 for gross proceeds of CDN$16,593,302, of which Kennecott Canada (Rio Tinto) took 6,306,921 units and Ivanhoe took 1,235,489 units under its pre-emptive right. Ivanhoe also exercised warrants for a further 4.6 million shares and now holds 10,435,489 shares (about 16%); a finder's fee of about CDN$555,000 is owed to Immoalp s.a. The company says the financing plus the warrant exercise puts about CDN$22 million into its treasury, resolving the June placement thread.

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29 June 2005capital raising announcement▲ GoodMajor

On June 27, 2005 Ivanhoe Mines exercised 4.6 million warrants at CDN$1.10 (first acquired in November 2004), taking its stake to about 16.4%, and said it will use its pre-emptive right in the Rio Tinto unit placement at CDN$2.20. The company also reported strong copper mineralization in drill hole EGD016C at Copper Flats, which it says appears to be part of a continuous zone of high-grade copper and gold; the filing says more infill drilling is needed to confirm geometry and grade.

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15 June 2005capital raising announcement● Neutral

On June 9, 2005 the company granted options on 2,545,000 shares to 24 directors, officers, employees and consultants at CDN$1.75, exercisable until June 9, 2010, which could dilute existing shareholders if exercised. Its shares also began trading on the Frankfurt Stock Exchange on June 10, 2005 (symbol EKA), and the company's incorporation is now shown as British Columbia rather than Yukon Territory.

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31 May 2005capital raising announcement● Neutral

On May 24, 2005 the company hired Martin Robert Griesdorf for as-needed investor relations support in the United States for 12 months, either side able to end it at any time. As part of this it granted him options on 75,000 shares at CDN$1.48, exercisable until May 24, 2010 and vesting monthly over 12 months. This is a small potential dilution, not a cash raise.

What it means for a shareholder

75,000 new shares at C$1.48 to raise about C$111,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.

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