VANCOUVER, BC / ACCESSWIRE / May 13, 2022 / SouthGobi Resources Ltd. (TSX:SGQ) (HK:1878) ("SouthGobi" or the "Company") announces that announces that, on May 13, 2022, the Company and Land Breeze II S.à.r.l. ("Land Breeze"), a wholly-owned subsidiary of a major shareholder of the Company (the "Major Shareholder"), signed a new deferral agreement (the "2022 May Deferral Agreement") pursuant to which Land Breeze agreed to grant the Company a deferral of the interest payments which are due and payable on May 19, 2022 under the convertible debenture dated November 19, 2009 (the "Convertible Debenture").
The effectiveness of the 2022 May Deferral Agreement and the respective obligations, covenants and agreements of each party under the 2022 May Deferral Agreement are subject to the Company obtaining the requisite acceptance thereof from the Toronto Stock Exchange (the "TSX").
The principal terms of the 2022 May Deferral Agreement are as follows:
The Company will make further announcements regarding the potential of further future deferrals of its payment obligations under the Convertible Debenture as and when appropriate. There can be no assurance, however, that any agreement for future deferrals will be reached with the Major Shareholder either at all or on favourable terms.
If there is any inconsistency or discrepancy between the English version and the Chinese version, the English version shall prevail.
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 licences of its other metallurgical and thermal coal deposits in South Gobi region of Mongolia. SouthGobi produces and sells coal to customers in China.
Certain information included in this press release that is not current or historical factual information constitutes forward-looking statements or information within the meaning of applicable securities laws (collectively, "forward-looking statements"), including information about the potential of further future deferrals of its payment obligations under the Convertible Debenture. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "could", "should", "seek", "likely", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on certain factors and assumptions including, among other things, the Company's ability to successfully negotiate a future deferrals of its payment obligations under the Convertible Debenture and other similar factors that may cause actual results to differ materially from what the Company currently expects. Actual results may vary from the forward-looking statements. Readers are cautioned not to place undue importance on forward-looking statements, which speaks only as of the date of this disclosure, and not to rely upon this information as of any other date. While the Company may elect to, it is under no obligation and does not undertake to, update or revise any forward-looking statements, whether as a result of new information, further events or otherwise at any particular time, except as required by law. Additional information concerning factors that may cause actual results to materially differ from those in such forward-looking statements is contained in the Company's filings with Canadian securities regulatory authorities and can be found under the Company's profile on SEDAR at www.sedar.com.
SOURCE: SouthGobi Resources Ltd.