VANCOUVER, British Columbia, Dec. 24, 2018 (GLOBE NEWSWIRE) -- SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the “Company”) announces that the Company is in default under the convertible debenture between China Investment Corporation (“CIC”) and the Company signed in November 2009 (the “Convertible Debenture”) as a result of the Company having now been suspended from trading on the Toronto Stock Exchange (“TSX”), halted from trading on the Hong Kong Stock Exchange (the “SEHK”), for a period of more than 5 trading days since December 17, 2018. Trading on the TSX will remain suspended until clarification regarding the business and affairs of the Company is announced and trading on the SEHK will remain halted pending the publication of an insider information announcement.
Pursuant to the terms of the Convertible Debenture, CIC may, at its discretion, provide notice to the Company and declare all principal, interest and other amounts owing under the Convertible Debenture immediately due and payable, and take steps to enforce payment thereof, which would have a material adverse effect on the business and operations of the Company and the value of the Company’s common shares could be materially and negatively affected.
The Company and CIC are having active and close discussion on the issues related to the Convertible Debenture and the deferral agreement executed on June 12, 2017. As of today, the Company has not received any such notice from CIC to demand any payments nor declare any outstanding balances immediately due and payable, as a result of the above mentioned trading suspension and trading halt and other event(s) of default.
The Company will provide further updates of the status of this matter as appropriate.
SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining licences of its other metallurgical and thermal coal deposits in South Gobi Region of Mongolia. SouthGobi produces and sells coal to customers in China.
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