SouthGobi Resources : Announces Agreement with CIC for Deferral of Cash Interest Payments
November 24, 2015 at 10:41 am EST
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HONG KONG, CHINA--(Marketwired - Nov 24, 2015) - SouthGobi Resources Ltd. (TSX:SGQ)(HKSE:1878) (the "Company" or "SouthGobi") today announces the execution of a deferral agreement with China Investment Corporation ("CIC") for deferral of cash interest payments with below key terms:
the Cash Interest payment originally due on May 22, 2015 and deferred to November 19, 2015 (the "2015 Half-Year Interest Payment") pursuant to the terms of the Deferral Agreement dated July 22, 2015 shall be due and payable as follows:
U.S.$1,000,000 on November 19, 2015;
U.S.$1,000,000 on December 19, 2015;
U.S.$1,000,000 on January 19, 2016;
U.S.$1,000,000 on February 19, 2016;
U.S.$1,000,000 on March 19, 2016;
U.S.$1,000,000 on April 19, 2016; and
U.S.$2,000,000 on May 18, 2016;
the Cash Interest payment due on November 19, 2015 (the "2015 Issue Date Anniversary Cash Interest Payment") shall be due and payable in cash on May 18, 2016;
the Deferral Fee (as defined in the Deferral Agreement dated July 22, 2015) payment due on November 19, 2015 (the "2015 Deferral Fee Payment") shall be due and payable in cash on May 18, 2016; and
as consideration for the above deferrals, the Company agrees to pay CIC a deferral fee at a rate of 6.4% per annum on the above deferred payments.
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.
FORWARD-LOOKING STATEMENTS
Except for statements of fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the dates the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include any other statements that are not historical facts. Except as required by law, the Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
SouthGobi Resources Ltd. is a Canada-based coal mining, development, and exploration company. The Company holds six mining licenses in Mongolia. The mining licenses pertain to the Ovoot Tolgoi Mine (MV-012726), the Soumber Deposit (MV-016869, MV-020436 and MV-020451) and the Zag Suuj Deposit (MV-020676 and MV-020675). The Ovoot Tolgoi Mine, strategically located approximately 40km from the Shivee Khuren-Ceke crossing at the Chinese-Mongolian border (Shivee Khuren Border Crossing). The Ovoot Tolgoi Mine has two distinct pits, namely the Sunrise and Sunset pits. The Soumber Deposit, comprising the Central Soumber, East Soumber, Biluut, South Biluut and Jargalant Fields, is located approximately 20km east of the Ovoot Tolgoi Mine. The Zag Suuj Deposit, located approximately 150km east of the Ovoot Tolgoi Mine and approximately 80km north of the Mongolia-China border, lies within the administrative units of Noyon and Bayandalai Soums in the Umnugobi Aimag (South Gobi Province).
SOUTHGOBI RESOURCES LTD. 
