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ERLFF 6-K

Entree Resources Ltd. (ERLFF)

6-K 2020-08-28 For: 2020-08-28
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Added on April 10, 2026

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

Forthe month of August 2020

Commission File Number: 001-32570

ENTRÉE RESOURCES LTD (Translation of registrant's name into English)


Suite 1650 – 1066 West Hastings Street,

Vancouver, BC, V6E 3X1, Canada

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F  x        Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission fling on EDGAR.

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨         No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-__________.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

ENTRÉE RESOURCES LTD
(Registrant)
Date: August 28, 2020 By: /s/ Duane Lo
Duane Lo
Chief Financial Officer

EXHIBIT LIST

Exhibit Description
99.1 News Release dated August 20, 2020 - ENTRÉE RESOURCES ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

Exhibit 99.1

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES


ENTRÉE RESOURCES ANNOUNCES NON-BROKEREDPRIVATE PLACEMENT

Vancouver,B.C., August 20, 2020 – Entrée Resources Ltd. (TSX: ETG; OTCQB: ERLFF – the “Company” or “Entrée”) is pleased to announce a non-brokered private placement of up to 10,000,000 units of the Company (“Units”) at a price of C$0.43 per Unit for gross proceeds of up to C$4,300,000 (the “Private Placement”).

Each Unit will consist of one common share and one-half of one transferable common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of C$0.60 per share for a period of three years following the date of issuance.

The net proceeds from the Private Placement are expected to be used to update the National Instrument 43-101 Technical Report on the Company’s interest in the Entrée/Oyu Tolgoi joint venture property in Mongolia (the “Entrée/Oyu Tolgoi JV Property”) and for general corporate purposes.

Closing of the Private Placement is anticipated to occur in the third quarter of 2020 and is subject to receipt of all necessary regulatory approvals including acceptance by the Toronto Stock Exchange. The securities issued in connection with the Private Placement will be subject to a hold period of four months plus one day from the date of issuance, in accordance with applicable securities laws.

Certain insiders of the Company may acquire Units under the Private Placement. Any participation by insiders in the Private Placement would constitute a “related party transaction” as defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders inSpecial Transactions (“MI 61-101”). However, such participation would be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 based on the fact that neither the fair market value of the Units subscribed for by the insiders, nor the consideration paid by such insiders for the Units, would exceed 25% of the Company’s market capitalization.

The securities being offered pursuant to the Private Placement have not been, and will not be registered under the United States Securities Act of 1933, as amended, or state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. federal and state registration or an applicable exemption from the U.S. registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.

ABOUT ENTRÉE RESOURCESLTD.

Entrée Resources Ltd. is a Canadian mining company with a unique carried joint venture interest on a significant portion of one of the world’s largest copper-gold projects – the Oyu Tolgoi project in Mongolia. Entrée has a 20% or 30% carried participating interest in the Entrée/Oyu Tolgoi JV Property, depending on the depth of mineralization. Sandstorm Gold, Rio Tinto and Turquoise Hill Resources are major shareholders of Entrée, holding approximately 21%, 9% and 8% of the shares of the Company, respectively. More information about Entrée can be found at www.EntreeResourcesLtd.com.

FURTHER INFORMATION

David Jan

Investor Relations

Entrée Resources Ltd.

Tel: 604-687-4777 | Toll Free: 1-866-368-7330

E-mail: [email protected]

This News Release contains forward-lookingstatements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking informationwithin the meaning of applicable Canadian securities laws with respect to the proposed Private Placement; anticipated closing ofthe proposed Private Placement; anticipated use of proceeds; the potential filing of an updated Technical Report on the Company’sinterest in the Entrée/Oyu Tolgoi JV Property; and other matters that may occur in the future.

In certain cases, forward-lookingstatements and information can be identified by words such as "plans", "expects" or "does not expect","is expected", "budgeted", "scheduled", "estimates", "forecasts", "intends","anticipates", or "does not anticipate" or "believes" or variations of such words and phrases orstatements that certain actions, events or results "may", "could", "would", "might", "willbe taken", "occur" or "be achieved". While the Company has based these forward-looking statements on itsexpectations about future events as at the date that such statements were prepared, the statements are not a guarantee of Entrée’sfuture performance and are based on numerous assumptions regarding present and future business strategies; the correct interpretationof agreements, laws and regulations; local and global economic conditions and negotiations and the environment in which Entréewill operate in the future, including commodity prices, projected grades, projected dilution, anticipated capital and operatingcosts, anticipated future production and cash flows; the anticipated location of certain infrastructure and sequence of miningwithin and across panel boundaries; the construction and continued development of the Oyu Tolgoi underground mine; and the statusof Entrée’s relationship and interaction with the Government of Mongolia, Oyu Tolgoi LLC ("OTLLC"),Rio Tinto and Turquoise Hill Resources. With respect to the construction and continued development of the Oyu Tolgoi undergroundmine, important risks, uncertainties and factors which could cause actual results to differ materially from future results expressedor implied by such forward-looking statements and information include, amongst others, the timing and cost of the constructionand expansion of mining and processing facilities; the timing and availability of a long term domestic power source for Oyu Tolgoi(or the availability of financing for OTLLC or the Government of Mongolia to construct such a source); the potential impact ofCOVID-19; the ability of OTLLC to secure and draw down on the supplemental debt under the Oyu Tolgoi project finance facility andthe availability of additional financing on terms reasonably acceptable to OTLLC, Turquoise Hill Resources and Rio Tinto to furtherdevelop Oyu Tolgoi; the impact of changes in, changes in interpretation to or changes in enforcement of, laws, regulations andgovernment practises in Mongolia; delays, and the costs which would result from delays, in the development of the underground mine;the status of the relationship and interaction between OTLLC, Rio Tinto and Turquoise Hill Resources with the Government of Mongoliaon the continued operation and development of Oyu Tolgoi and OTLLC internal governance; the anticipated location of certain infrastructureand sequence of mining; projected copper, gold and silver prices and their market demand; and production estimates and the anticipatedyearly production of copper, gold and silver at the Oyu Tolgoi underground mine.

Other risks, uncertainties and factorswhich could cause actual results, performance or achievements of Entrée to differ materially from future results, performanceor achievements expressed or implied by forward-looking statements and information include, amongst others, unanticipated costs,expenses or liabilities; discrepancies between actual and estimated production, mineral reserves and resources and metallurgicalrecoveries; development plans for processing resources; the outcome of the definitive estimate review; matters relating to proposedexploration or expansion; mining operational and development risks, including geotechnical risks and ground conditions; regulatoryrestrictions (including environmental regulatory restrictions and liability); risks related to international operations, includinglegal and political risk in Mongolia; risks associated with changes in the attitudes of governments to foreign investment; risksassociated with the conduct of joint ventures; risks related to the potential impact of global or national health concerns, includingthe COVID-19 (coronavirus) pandemic; inability to upgrade Inferred mineral resources to Indicated or Measured mineral resources;inability to convert mineral resources to mineral reserves; conclusions of economic evaluations; fluctuations in commodity pricesand demand; changing foreign exchange rates; the speculative nature of mineral exploration; the global economic climate; dilution;share price volatility; activities, actions or assessments by Rio Tinto, Turquoise Hill Resources or OTLLC and by government authoritiesincluding the Government of Mongolia; the availability of funding on reasonable terms; the impact of changes in interpretationto or changes in enforcement of laws, regulations and government practices, including laws, regulations and government practiceswith respect to mining, foreign investment, royalties and taxation; the terms and timing of obtaining necessary environmental andother government approvals, consents and permits; the availability and cost of necessary items such as water, skilled labour, transportationand appropriate smelting and refining arrangements; unanticipated reclamation expenses; changes to assumptions as to the availabilityof electrical power, and the power rates used in operating cost estimates and financial analyses; changes to assumptions as tosalvage values; ability to maintain the social licence to operate; accidents, labour disputes and other risks of the mining industry;global climate change; title disputes; limitations on insurance coverage; competition; loss of key employees; cyber security incidents;misjudgements in the course of preparing forward-looking statements; as well as those factors discussed in the Company’smost recently filed MD&A and in the Company’s Annual Information Form for the financial year ended December 31, 2019,dated March 13, 2020 filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company hasattempted to identify important factors that could cause actual actions, events or results to differ materially from those describedin forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimatedor intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in such statements. Accordingly, readers should not place undue relianceon forward-looking statements. The Company is under no obligation to update or alter any forward-looking statements except as requiredunder applicable securities laws.

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