SouthGobi announces an update on enforcement of Arbitration Award with First Concept
June 02 2020 - 7:34AM
SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878)
(“
SouthGobi” or the “
Company”)
announces receipt of a letter dated June 1, 2020 (the
“
Demand Letter”) from legal counsel to First
Concept Industrial Group Limited (“
First Concept”)
demanding repayment of the outstanding sums and interests pursuant
to an enforcement order issued in January 2020 in relation to the
arbitration award (the “
Arbitration Award”)
related to a coal supply agreement with First Concept. The Demand
Letter stated that if the Company fails to repay the outstanding
payments on or before June 10, 2020, First Concept will initiate a
bankruptcy case in the relevant court of Mongolia against SouthGobi
Sands LLC, the Company’s subsidiary in Mongolia. For more
information regarding the Arbitration Award, the status of the
settlement deed in the relation to the Arbitration Award and the
enforcement of the Arbitration Award in Mongolia, please refer to
the Company’s prior announcements dated November 16, 2018, February
19, 2020 and March 30, 2020.
The Company has retained and is consulting with
independent Mongolian legal counsel to consider appropriate
actions. The Company will provide further updates regarding the
enforcement of the Arbitration Award as and when appropriate.
About SouthGobiSouthGobi,
listed on the Toronto and Hong Kong stock exchanges, owns and
operates its flagship Ovoot Tolgoi coal mine in Mongolia.
SouthGobi produces and sells coal to customers in China.
Contact: |
|
Investor Relations |
|
|
Office: |
+852
2156 1438 (Hong Kong) |
|
+1
604 762 6783 (Canada) |
Email: |
info@southgobi.com |
|
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Website: |
www.southgobi.com |
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