SouthGobi provides update on status of internal investigation
May 7, 2018
SouthGobi provides update on status of
internal investigation
VANCOUVER – SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the
“Company”) today provided an update on the status of the formal internal investigation by the
special committee of independent non -executive directors of the Company (the “ Special
Committee”) into charges against Mr. Aminbuhe, a non-executive director of the Company
and its former chairman and chief executive officer, and the connection, if any, between those
charges and the Company. Mr. Aminbuhe’s arrest and the formation of the Special Committee
were disclosed by the Company on November 17, 2017.
As previously disclosed, the Compan y understands that Mr. Aminbuhe was arrested by the
authorities in Rizhao City, Shandong Province in China (the “PRC Authorities”) on October 11,
2017. To the best of the Company’s knowledge, as of the date of this announcement, the
PRC Authorities have not laid charges against Mr. Aminbuhe or made any public statement of
the basis for Mr. Aminbuhe’s arrest, although the Company understands that it relates to an
alleged fraudulent loan. The PRC Authorities have not sought information from the Company
in respect of this matter. Furthermore, the Company is not aware of any definitive information
which would suggest that Mr. Aminbuhe’s arrest is related to any misconduct directly related
to his position as chairman and chief executive officer of the Company or that the alleged
fraudulent loan involved the Company.
To date, with the assistance of their external counsel, the Special Committee has conducted
an extensive review of records created or relating to Mr. Aminbuhe in the possession of the
Company (inclu ding communications to and from Mr. Aminbuhe’s email account with the
Company, relevant public disclosure and other internal documents), and interviewed several
directors and senior officers of the Company who had direct contact with Mr. Aminbuhe during
his tenure of the chairman and the chief executive officer.
Where appropriate, the Company plans to communicate with the PRC Authorities to
understand the current status of Mr. Aminbuhe’s detention and communicate with Mr.
Aminbuhe’s defense counsel to understand the current status of Mr. Aminbuhe’s detention
and obtain any other information regarding the loans involved. The investigation is ongoing,
and the Company will provide further updates as matters evolve.
About 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 licences of its other
metallurgical and thermal coal deposits in South Gobi Region of Mongolia. Sout hGobi
produces and sells coal to customers in China.
Contact:
Investor Relations
Kino Fu
Office: +852 2156 7030
Email: [email protected]
Website: www.southgobi.com