(1) Update on Delay in Publication of 2019 Audited Annual Results and Despatch of 2019 Annual Report; (2) Update on Delay in ...
August 13 2020 - 2:32AM
SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878)
(“
SouthGobi” or the “
Company”)
announces that reference is made to the announcements of the
Company dated June 21, 2020, June 30, 2020 and July 24, 2020
(collectively, the “
Announcements”) in relation to
the delay in publication of the 2019 Audited Annual Results and the
despatch of the 2019 Annual Report. Unless otherwise stated herein,
capitalized terms used herein shall have the same meanings as that
ascribed to them in the Announcements.
Delay in Publication of 2019 Audited
Annual Results and Despatch of 2019 Annual Report
In its announcement dated July 24, 2020, the
Company disclosed that it expected to be in a position to issue its
2019 Audited Annual Results and 2019 Annual Report by August 14,
2020, provided the following assumptions hold true: (i) the Company
concludes written settlement agreements with each of the key
creditors that has provided a verbal commitment to the Company to
do so on or before July 30, 2020; and (ii) the Company and its
major shareholder conclude an agreement on an avenue of support for
the Company that the Auditors consider as acceptable evidence to
support the Company’s going concern assumptions.
As of the date hereof, the Company has not
entered into a written settlement agreement with one of the
aforementioned key creditors and has not reached an agreement with
its major shareholder in relation to an avenue of support that is
acceptable to the Auditors. Accordingly, the Company will be unable
to issue the 2019 Audited Annual Results and 2019 Annual Report by
August 14, 2020 as previously anticipated.
The Company continues to work closely with the
Auditors and provide them with audit evidence to support the going
concern assumptions for the Company’s 2019 Financial Statements in
order to issue the 2019 Audited Annual Results at the earliest
possible date.
Delay in Publication of 2020 Q1
Financial Results
The filing deadline for the Company’s 2020 Q1
financial results for the quarter ended March 31, 2020
(“2020 Q1 Financial Results”) was May 15, 2020 as
required under applicable Canadian securities laws. However, the
Company cannot issue its 2020 Q1 Financial Results until it first
issues its 2019 Audited Annual Results. Currently, the 2020 Q1
Financial Results have not been reviewed by the Auditors. If and
when the 2019 Audited Annual Results are issued, the Company
expects that it will take approximately 30 days from the date of
issuance of the 2019 Audited Annual Results for the Auditors to
complete the review of, and the Company to issue, the 2020 Q1
Financial Results.
Delay in Publication of 2020 Q2
Financial Results
The filing deadline for the Company’s 2020 Q2
financial results for the quarter ended June 30, 2020
(“2020 Q2 Financial Results”) is August 14, 2020
as required under applicable Canadian securities laws and is August
31, 2020 as required under Hong Kong Listing Rules respectively.
However, the Company cannot issue its 2020 Q2 Financial Results
until it first issues its 2019 Audited Annual Results. Currently,
the 2020 Q2 Financial Results have not been finalized and have not
been reviewed by the Auditors. If and when the 2019 Audited Annual
Results and the 2020 Q1 Financial Results are released, the Company
expects that it will take approximately 30 days from the date of
issuance of the 2020 Q1 Financial Results for the Auditors to
complete the review of, and the Company to issue, the 2020 Q2
Financial Results.
Cease Trade Order
The BCSC issued the CTO against the Company on
June 19, 2020 as a result of the Company’s failure to file the
Company’s 2019 Financial Statements and 2020 Q1 interim financial
statements, and the related management’s discussion and analysis
and management certifications related thereto. The Company
expects the CTO will remain in place until such time as the
Company’s 2019 Financial Statements, 2020 Q1 interim financial
statements and 2020 Q2 interim financial statements are filed. The
Company continues to work closely with the Auditors to provide them
with audit evidence to support the going concern assumptions for
the Company’s 2019 Financial Statements, and to issue the 2019
Audited Annual Results, 2020 Q1 Financial Results 2020 Q2 Financial
Results at the earliest possible dates.
Business Update
The Company’s sales volume in July 2020 was
approximately 0.25 million tonne, representing a 16% increase from
sales volume in June 2020. The Company has resumed the mining
operation since August 2, 2020.
DUE TO THE AFOREMENTIONED DELAY IN
PUBLICATION OF 2019 AUDITED ANNUAL RESULTS, THE COMPANY WILL APPLY
FOR A TRADING SUSPENSION FROM THE HONG KONG STOCK EXCHANGE,
EFFECTIVE FROM 9AM ON AUGUST 17, 2020, PENDING FOR PUBLICATION OF
2019 AUDITED ANNUAL RESULTS.
SHAREHOLDERS AND POTENTIAL INVESTORS OF
THE COMPANY SHOULD EXERCISE CAUTION WHEN THEY DEAL OR CONTEMPLATE
DEALING IN THE COMPANY’S SHARES OR OTHER SECURITIES OF THE
COMPANY.
The Company will make further announcement(s) in
relation to the above matters, as and when appropriate. If there is
any inconsistency or discrepancy between the English version and
the Chinese version, the English version shall prevail.
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
Website: www.southgobi.com
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