SouthGobi served with notice of claim by former Chief Executive Officer. The Company considers the claim has no merit and will vigorously defend the action.
HONG KONG, CHINA--(Marketwired - Jul 2, 2015) - On June 30, 2015, SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) (the "Company" or "SouthGobi") was served with a Notice of Civil Claim filed by the Company's former President and Chief Executive Officer, Alexander Molyneux, in the British Columbia Supreme Court. The claim relates to alleged breaches of Mr. Molyneux's employment agreement by the Company. In addition to the Company, Turquoise Hill Resources Ltd., the Company's largest shareholder at the time of Mr. Molyneux's employment, was also named in the claim.
Mr. Molyneux acted as the Company's President (from April 2009) and Chief Executive Officer (from October 2009) until September 2012, when the Company terminated his employment. Reference is made to the Company's press release dated September 12, 2012 announcing Mr. Molyneux's termination.
Mr. Molyneux is seeking damages in excess of US$1 million in his Notice of Claim. The Company considers the action is without merit. SouthGobi intends to vigorously defend the action and reserves its right to pursue all legal rights and remedies available to it in connection with the proceedings.
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.
Contact
Investor 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