Turquoise Hill’s sale and purchase agreement with National United Resources for 56,102,000 Common Shares in SouthGobi has expired Resumption of Trading
May 4, 2015
Turquoise Hill’s sale and purchase agreement with National United Resources for 56,102,000 Common Shares in SouthGobi has expired
Resumption of Trading
HONG KONG – SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the “Company”) has been notified of the expiry of the Sale and Purchase agreement (“NUR SPA”) between Turquoise Hill Resources Ltd. (“Turquoise Hill”) and National United Resources Holdings Limited (“NUR”) which provided for the sale of 56,102,000 common shares in the Company (“Common Shares”).
The Company has been advised that the NUR SPA as amended on December 2, 2014 was unable to be completed as required by the terms of the NUR SPA.
As detailed in the Company’s management’s discussion and analysis of financial condition and results of operations (“MD&A) for the year ended December 31, 2014, and available on www.sedar.com, the repayment of the $3.8 million principal and accrued interest owing on the Turquoise Hill shareholder loan facility (“Turquoise Hill Loan Facility”) is subject to certain conditions and limitations, including the completion by April 30, 2015 of the transaction contemplated by the NUR SPA. Therefore, SouthGobi and Turquoise Hill are currently finalising terms in respect of the repayment of the Turquoise Hill Loan Facility.
As at May 4, 2015 Turquoise Hill continues to own 56,102,000 Common Shares in SouthGobi, representing approximately 23.3% of SouthGobi’s issued and outstanding shares.
Resumption of Trading
Pending the issuance of this announcement, trading of the shares of the Company on the Stock Exchange of Hong Kong Limited was halted with effect from 9:08 am Hong Kong Time on Monday, May 4, 2015.
An application has been made by the Company to the Stock Exchange for the resumption of trading in the shares of the Company with effect from 1:00 pm Hong Kong Time on Monday, May 4, 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.
Contacts:
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Galina Rogova Altanbagana Bayarsaikhan Office: +86-21-6103-3550 Office: +976 70070710 Email: [email protected] Email: [email protected]