|SouthGobi Resources Limited
TSX : SGQ
April 25, 2016 08:00 ET
HONG KONG, CHINA–(Marketwired – April 25, 2016) – SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) (the “Company” or “SouthGobi”) announces update on the shareholder loan due to Turquoise Hill Resources Ltd. (“Turquoise Hill”).
On October 27, 2015, the Company and Turquoise Hill entered into a deferral agreement, in which Turquoise Hill agreed to defer the repayment of the shareholder loan to April 22, 2016.
The Company had not repaid the shareholder loan on April 22, 2016, and is currently in discussions with Turquoise Hill for a new repayment plan of the shareholder loan which has an outstanding loan principal of US$3.4 million and interest accrued up to April 22, 2016 of US$0.7 million. While SouthGobi believes it will be able to reach such a new repayment plan with Turquoise Hill, there is no assurance that the repayment plan will be favorable to SouthGobi.
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 and exploration licences of its other metallurgical and thermal coal deposits in South Gobi Region of Mongolia. SouthGobi produces and sells coal to customers in China.