The Continued Listing Committee of Toronto Stock Exchange (TSX) has advised SouthGobi Resources of its decision to extend the delisting review until November 23, 2015.
The committee was planning to make a decision regarding SouthGobi’s listing status and whether the company had met the listing requirements of the TSX by October 28. On October 30 it notified the company of its decision to extend the delisting review.
In regards to financing initiatives SouthGobi executed a US$10 million bridge loan agreement with an Asian-based private equity fund and drew down $6.3 million on October 30. It expects to draw down the remaining $3.7 million by mid-November.
SouthGobi and shareholder Turquoise Hill Resources also entered into a deferral agreement on October 27 in which Turquoise Hill agreed to defer the repayment of the shareholder loan and other payables to April 22, 2016, and the limited deferral date shall be extended to October 24, 2016, subject to completion of a potential share sales transaction by Turquoise Hill.
The board of directors of SouthGobi will meet on November 12 to consider and approve the third quarter 2015 financial results of the company and its subsidiaries. These financial results will be released on November 12.
SouthGobi, which is 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, which produces and sells coal to customers in China.