VANCOUVER, British Columbia, Nov. 23, 2017 (GLOBE NEWSWIRE) -- SouthGobi Resources Ltd. (TSX:SGQ) (HK:1878) (“SouthGobi” or the “Company”) announces today that the Board of Directors of the Company (the “Board”) has terminated the employment of the Company’s Chief Executive Officer, Mr. Aminbuhe, due to his incapability to fulfil his daily duties and responsibilities as the Chief Executive Officer of the Company, effective immediately in accordance with the terms of his employment agreement. Mr. Aminbuhe has also been removed as the Chairman of the Board, but remains on the Board and becomes a non-executive director of the Company.
The Nominating & Corporate Governance Committee of the Board will commence a search process for a new permanent Chief Executive Officer immediately. Mr. Bing Wang, who was appointed as interim Chief Executive Officer on November 13, 2017, will continue to act in this capacity until a replacement is appointed by the Board. During this interim period, the Company will continue to carry on its business in the normal course, relying on the depth and experience of its management team and the Board.
As disclosed on November 17, 2017, the Company learned that Mr. Aminbuhe was arrested on October 11, 2017 and is being detained at Rizhao City Detention Center in China as a suspect in a fraudulent loan case. The Board has formed a special committee of independent non-executive directors (the “Special Committee”) to initiate a formal internal investigation into the charges against Mr. Aminbuhe and the connection, if any, between those charges and the Company and his conduct as Chairman and Chief Executive Officer of the Company, which will include engaging external advisors to assist in the investigation. The Special Committee will report to the Board from time to time with respect to the results and status of its investigation and the potential impact of these matters, if any, on the business and affairs of the Company.
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.