Horizon Copper Celebrates Positive Arbitration Ruling for Entrée Resources

Horizon Copper Corp. has announced a significant development regarding its joint venture with Entrée Resources Ltd. The arbitration proceedings concerning the Oyu Tolgoi copper project in Mongolia have concluded favorably for Entrée, providing a boost to the project's future prospects.

Key Takeaways

• Horizon Copper's joint venture partner, Entrée Resources, received a favorable ruling in arbitration against Oyu Tolgoi LLC.
• The arbitration tribunal upheld critical aspects of the Joint Venture Agreement (JVA), enhancing project certainty.
• The ruling mandates OTLLC to provide an executed copy of the JVA and facilitate the transfer of mining licenses.

Overview of the Arbitration Proceedings

On December 19, 2024, Entrée Resources announced a favorable outcome in its binding arbitration against Oyu Tolgoi LLC and Turquoise Hill Resources Ltd. The international arbitration tribunal issued a partial final award in favor of Entrée, affirming essential components of its Joint Venture Agreement (JVA) with OTLLC. This decision is expected to provide greater certainty for the ongoing development of the Oyu Tolgoi project, particularly as critical work for Lift 1 Panel 1 continues.

Details of the Joint Venture Agreement

Entrée and OTLLC have been collaborating under the Entrée/Oyu Tolgoi JVA since OTLLC completed its earn-in obligations in 2008. The arbitration proceedings, initiated by Entrée in May 2022, sought specific performance declarations related to the Earn-in Agreement and JVA. The tribunal's final and binding declarations include:

1. OTLLC must provide Entrée with an executed copy of the JVA, subject to mutually agreed amendments.
2. OTLLC is required to facilitate and accept the transfer of the Shivee Tolgoi and Javhlant mining licenses for the joint venture.
3. Any taxes and fees related to the transfer of the licenses will be governed by the JVA, with OTLLC covering Entrée's 20% share as a loan.

Future Implications

While the tribunal's ruling addresses several key issues, a decision on Entrée's additional claims for specific performance, equitable damages, and costs is still pending. Entrée has committed to updating the market as further developments arise.

Horizon Copper's Position

Horizon Copper holds a 24% equity stake in Entrée Resources, which provides it with exposure to the Hugo North Extension of the Oyu Tolgoi copper mine. The company is recognized for its robust portfolio of copper assets, including a 1.66% net profits interest in the Antamina copper mine and a 30% interest in the copper-gold Hod Maden project. Horizon Copper aims to expand its asset portfolio with a focus on copper projects, positioning itself as a key player in the industry.

This favorable arbitration outcome not only strengthens Entrée's position but also enhances Horizon Copper's prospects in the competitive copper market, paving the way for future growth and development in the sector.

Sources

• Horizon Copper Reports Favorable Outcome for Entrée Resources Arbitration Proceedings, Yahoo.