SouthGobi Announces Deferral Agreement With CIC
HONG KONG, CHINA--(Marketwired - Jul 18, 2016) - SouthGobi Resources Ltd. (TSX:SGQ)(HK:1878) ("SouthGobi" or the "Company") announces the execution of a deferral agreement with China Investment Corporation ("CIC"). The deferral agreement covers outstanding deferred cash interest obligations and associated costs of US$18.8 million as of today and the next Issue Date Anniversary Cash Interest payment of US$8.1 million due on November 19, 2016.
Pursuant to the deferral agreement, the Company has agreed to repay US$1.3 to $1.4 million monthly during July to November 2016 and repay U.S$20.7 million on December 19, 2016. As a consideration for the deferred payments, the Company will pay a deferral fee at a rate of 6.4% per annum to CIC.
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 and exploration licences of its other metallurgical and thermal coal deposits in South Gobi Region of Mongolia. SouthGobi produces and sells coal to customers in China.
Contact
SouthGobi Resources Ltd.
Kino Fu
Investor Relations
+852 2156 7030
kino.fu@southgobi.com
www.southgobi.com