VANCOUVER, British Columbia, Nov. 16, 2020 (GLOBE NEWSWIRE) -- SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the “Company”) announces that reference is made to the announcements of the Company dated September 3, September 13, September 30 and October 4, 2020 (the “Announcements”). Unless otherwise defined herein, terms used in this announcement shall have the same meanings as those defined in the Announcements.
This announcement provides a quarterly update on resumption progress and the update on the business operations of the Company.
RESUMPTION GUIDANCE
On September 2 and September 30, 2020, the Company received the letters from the Hong Kong Stock Exchange setting out the Resumption Guidance of the Company:
- publish all outstanding financial results and address any audit modifications;
- inform the market of all material information for the Company’s shareholders and investors to appraise its position;
- announce quarterly updates on the Company’s developments under Rules 13.24A of the Listing Rules, including, amongst other relevant matters, its business operations, its resumption plan and the progress of implementation; and
- resolve issues arising from the Cease Trade Order and/or the TSX Delisting Review, or take steps to the satisfaction of the Hong Kong Stock Exchange that the Company will be eligible for a primary listing on the Hong Kong Stock Exchange.
RESUMPTION PLAN AND PROGRESS OF IMPLEMENTATION
The Company has been taking active steps to address and comply with the Resumption Guidance as disclosed above; and is now working to complete the first key milestone in the resumption plan as outlined below:
| Expected time | Key items |
| On or before November 30, 2020 | To complete audit and publish the 2019 Audited Annual Results |
| On or before December 10, 2020 | To dispatch the 2019 Annual Report |
| On or before December 31, 2020 | To publish 2020 quarterly financial results for the first quarter of 2020 |
| On or before December 31, 2020 | To file an application for the CTO revocation |
| On or before January 7, 2021 | To attend the TSX Delisting Review Hearing scheduled on January 7, 2021 or to apply for rescheduling of the TSX Delisting Review Hearing upon filing the application for the CTO revocation |
| On or before January 31, 2021 | To publish 2020 quarterly financial results for the second quarter of 2020 |
| On or before February 19, 2021 | To publish 2020 quarterly financial results for the third quarter of 2020 |
| On or before March 12, 2021 | To publish the resumption announcement after (i) the grant of CTO revocation by BCSC, (ii) the completion of TSX Delisting Review and (iii) the approval of trading resumption by the Hong Kong Stock Exchange |
UPDATE ON BUSINESS OPERATIONS
The sales volume the Company has increased from approximately 0.5 million tonne in the second quarter of 2020 to approximately 1.0 million tonne in the third quarter of 2020. The Company resumed its mining operation on August 2, 2020 and the raw coal production volume was 0.5 million tonne in the third quarter of 2020. The Company also resumed its coal washing operation on October 18, 2020.
CONTINUED SUSPENSION OF TRADING
At the request of the Company, trading in the shares of the Company on the Hong Kong Stock Exchange has been suspended with effect from August 17, 2020 and will remain suspended until further notice.
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.