Entree Gold (EGI -9.2%) shares slump after Mongolia’s mining ministry reportedly cancels two licenses on land that forms part of the Oyu Tolgoi deposit. EGI says it has not received formal notification from an government agency. Shares of Turquoise Hill Resources (TRQ -1.8%), which is developing Oyu Tolgoi, also drop.
Silk Road Management's Alisher Ali tips off Mongolia to be the fastest growing economy in the world this year, with GDP clicking along at a 20% annual growth rate. The untapped potential of the nation is also at the forefront of the heated boardroom battle between Ivanhoe Mines (IVN +0.1%) and Rio Tinto (RIO -0.2%).
Entree Gold (EGI -21.7%) dives in afternoon trading after announcing plans to issue C$12.5M in shares, which the company says it will use to "fund ongoing exploration" for mining projects in Nevada and Mongolia.