SouthGobi Resources Limited
HKSE : 1878

SouthGobi Resources Limited

November 01, 2015 07:36 ET

SouthGobi Resources Announces Update to TSX Delisting Review and Financing Initiatives, and Third Quarter 2015 Financial Results Announcement Date

HONG KONG, CHINA--(Marketwired - Nov. 1, 2015) - SouthGobi Resources Ltd. (TSX:SGQ) (HKSE:1878) (the "Company" or "SouthGobi") today announces the extension to the Toronto Stock Exchange (the "TSX") delisting review until November 23, 2015.

As announced by the Company on October 5, 2015, the Continued Listing Committee of TSX (the "Committee") would make a decision regarding the Company's listing status and whether the Company has met the listing requirements of the TSX by October 28, 2015. On October 30, 2015, the Committee has notified the Company of its decision to extend the delisting review until November 23, 2015.

Financing initiatives

Short-term Bridge Loan - The Company executed a US$10 million bridge loan agreement with an Asian based private equity fund and drew down $6.3 million on October 30, 2015. The Company expects to draw down the remaining $3.7 million by mid-November 2015.

Turquoise Hill Payment Deferral - The Company and Turquoise Hill Resources Ltd. ("Turquoise Hill") entered into a deferral agreement on October 27, 2015, in which Turquoise Hill agreed to defer the repayment of the shareholder loan and other payables to April 22, 2016 ("Limited Deferral Date") and the Limited Deferral Date shall be extended to October 24, 2016 subject to completion of a potential share sales transaction by Turquoise Hill.

Third quarter 2015 financial results announcement date

The board of directors of the Company will meet on November 12, 2015 to consider and approve the third quarter 2015 financial results of the Company and its subsidiaries. These financial results will be released on November 12, 2015.

About SouthGobi

SouthGobi, listed on the Toronto and Hong Kong stock exchanges, 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, a 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.


Except for statements of fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the dates the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include any other statements that are not historical facts. Except as required by law, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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