SouthGobi in default on China Investment convertible debentures

By Sarah Lizee

Olympia, Wash., Dec. 24 – SouthGobi Resources Ltd. said it is in default under its convertible debentures with China Investment Corp. signed in November 2009.

The default is the result of the company having now been suspended from trading on the Toronto Stock Exchange, halted from trading on the Hong Kong Stock Exchange, for a period of more than five trading days since Dec. 17, according to a press release.

Trading on the TSX will remain suspended until clarification regarding the business and affairs of the company is announced, and trading on the Hong Kong Stock Exchange will remain halted pending the publication of an insider information announcement, the company said.

SouthGobi said that it is in active and close discussions with China Investment on the issues related to the convertible debentures and the deferral agreement executed on June 12, 2017.

As of Monday, the company has not received any notice from China Investment to demand any payments nor declare any outstanding balances immediately due and payable, as a result of the trading suspension and trading halt and other events of default.

SouthGobi is a Vancouver, B.C., company that operates the Ovoot Tolgoi coal mine in Mongolia and holds other mining licenses for metallurgical and thermal coal deposits in the South Gobi region of Mongolia.

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