SouthGobi announces an update on enforcement of Arbitration Award with First Concept
VANCOUVER, British Columbia, June 02, 2020 (GLOBE NEWSWIRE) — 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 SouthGobi
SouthGobi, 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.