SOUTHGOBI RESOURCES LTD. Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
SOUTHGOBI RESOURCES LTD.
南戈壁資源有限公司*
(A company continued under the laws of British Columbia, Canada with limited liability)
(Hong Kong Stock Code: 1878)
(Toronto Stock Code: SGQ)
Legal proceedings involving a subsidiary of the Company
This announcement is made by SouthGobi Resources Ltd. ("SouthGobi" or the "Company")
pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on the Hong Kong Stock Exchange and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).
The Company announces that Inner Mongolia SouthGobi Energy Co., Ltd. ("IMSGE"), a subsidiary of the Company, has received a court summons (the "Summons") from the Ejinaqi People's Court of Inner Mongolia Autonomous Region of China (the "Ejinaqi Court") dated
September 13, 2018 in relation to a dispute over certain coal sales contracts with Jiayuguan
Xiyuan Trading Co., Ltd. ("Xiyuan"), a former customer of IMSGE.
According to the Summons, Xiyuan has applied to the Ejinaqi Court claiming that IMSGE should repay a sum of RMB 19.4 million (or approximately USD $2.8 million) to Xiyuan, comprised of RMB 19.1 million of coal prepayments and RMB 0.3 million of interest. Xiyuan also claimed Ejinaqi Fulemeng Energy Industry Co., Ltd. for joint liability of the above sums as it was alleged as an agent for IMSGE to receive coal prepayment and deliver coal on behalf of IMSGE.
A court hearing has been scheduled on October 10, 2018 regarding this matter.
* For identification purposes only
The Company firmly believes that it has a strong defense on the merits and will retain independent Chinese litigation counsel to vigorously defend itself against these claims. However, due to the inherent uncertainties of litigation, it is not possible to predict whether IMSGE will be successful in defending itself in these proceedings.
The Company will provide further updates on the status of this matter as appropriate.
By order of the Board SouthGobi Resources Ltd.
Mao Sun
Interim Independent Lead Director
Vancouver, September 20, 2018
Hong Kong, September 20, 2018
As at the date of this announcement, the executive director of the Company is Mr. Shougao Wang; independent non-executive directors are Messrs. Yingbin Ian He, Mao Sun and Ms. Jin Lan Quan; and the non-executive directors are Messrs. Wen Yao, Zhiwei Chen, Xiaoxiao Li and Ms. Lan Cheng.
September 20, 2018
Legal proceedings involving a subsidiary of the Company
VANCOUVER - SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) ("SouthGobi" or the "Company") The Company announces that Inner Mongolia SouthGobi Energy Co., Ltd.
("IMSGE"), a subsidiary of the Company, has received a court summons (the "Summons") from the Ejinaqi People's Court of Inner Mongolia Autonomous Region of China (the "Ejinaqi
Court") dated September 13, 2018 in relation to a dispute over certain coal sales contracts with Jiayuguan Xiyuan Trading Co., Ltd. ("Xiyuan"), a former customer of IMSGE.
According to the Summons, Xiyuan has applied to the Ejinaqi Court claiming that IMSGE should repay a sum of RMB 19.4 million (or approximately USD $2.8 million) to Xiyuan, comprised of RMB 19.1 million of coal prepayments and RMB 0.3 million of interest. Xiyuan also claimed Ejinaqi Fulemeng Energy Industry Co., Ltd. for joint liability of the above sums as it was alleged as an agent for IMSGE to receive coal prepayment and deliver coal on behalf of IMSGE.
A court hearing has been scheduled on October 10, 2018 regarding this matter.
The Company firmly believes that it has a strong defense on the merits and will retain independent Chinese litigation counsel to vigorously defend itself against these claims.
However, due to the inherent uncertainties of litigation, it is not possible to predict whether IMSGE will be successful in defending itself in these proceedings.
The Company will provide further updates on the status of this matter as appropriate.
About SouthGobi
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.
Contact:
Investor Relations Kino Fu
Hong Kong Office: +852 2156 7030 Vancouver Office: +1 604 762 6783 Email:kino.fu@southgobi.com
Website:www.southgobi.com
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SouthGobi Resources Ltd. published this content on 20 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 20 September 2018 11:57:05 UTC
