SouthGobi Resources Announces the Extension of Amounts Owing on the Turquoise Hill Facility
HONG KONG, CHINA--(Marketwired - Dec 5, 2014) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) ("SouthGobi" or the "Company") announces that subject to certain conditions and limitations, Turquoise Hill Resources Ltd. ("Turquoise Hill") have deferred amounts owing on the US$10 million revolving credit facility (the "Turquoise Hill Facility") provided to the Company as initially announced on May 25, 2014 and updated on August 31, 2014.
On December 4, 2014, Turquoise Hill agreed on a limited deferral of repayment on the US$3.8 million principal owing on the Turquoise Hill Facility as follows:
| (i) | US$1.9 million in principal and all interest that has accrued on and under the Turquoise Hill Facility up to and including May 30, 2015 shall become due and payable on May 30, 2015; and |
| (ii) | US$1.9 million in principal and all interest that has accrued on and under the Turquoise Hill Facility from June 1, 2015 up to and including August 31, 2015 shall become due and payable on August 31, 2015. |
This limited deferral is subject to certain conditions and limitations, including the completion by April 30, 2015 of the transaction contemplated by the Sale and Purchase Agreement between Turquoise Hill and National United Resources Ltd., as amended by an agreement dated December 2, 2014.
The Company continues to seek additional financing to fund its operations and meet its objectives.
About SouthGobi
SouthGobi is listed on the Toronto and Hong Kong stock exchanges, in which Turquoise Hill Resources Ltd. ("Turquoise Hill"), also publicly listed in Toronto and New York, has a 47.9% shareholding. Turquoise Hill took management control of SouthGobi in September 2012 and made changes to the board and senior management. Rio Tinto has a majority shareholding in Turquoise Hill.
SouthGobi is focused on exploration and development of its metallurgical and thermal coal deposits in Mongolia's South Gobi Region. It has a 100% shareholding in SouthGobi Sands LLC, Mongolian registered company that holds the mining and exploration licences in Mongolia and operates the flagship Ovoot Tolgoi coal mine. Ovoot Tolgoi produces and sells coal to customers in China.
Contact
Investors Relations
Galina Rogova
Office: +86-21-6103-3550
Email: galina.rogova@southgobi.com
Media Relations
Altanbagana Bayarsaikhan
Office: +976 70070710
Email: altanbagana.bayarsaikhan@southgobi.com
Website: www.southgobi.com
