VANCOUVER, British Columbia, June 21, 2020 (GLOBE NEWSWIRE) -- SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878) (“SouthGobi” or the “Company”) announces that the British Columbia Securities Commission has issued a general “failure to file” cease trade order (“CTO”) on June 19, 2020 (Vancouver time), to prohibit the trading by any person of any securities of the Company in Canada. Trading in the Company’s common shares on the TSX has been halted as a result of the CTO.
Reference is made to the announcement of the Company dated June 11, 2020 (“Announcement”). Unless the context otherwise requires, capitalized terms used herein shall have the same meanings as those defined in the Announcement.
The CTO was issued as of result the Company’s failure to file its the 2019 Annual Filings and its 2020 Interim Filings by the filing deadline of June 15, 2020. The CTO will remain in place until such time as the 2019 Annual Filings and 2020 Interim Filings are filed by the Company. Trading in the Company’s common shares on the TSX will remain halted for so long as the CTO remains in effect. There is no assurance that the Company will be able to remedy its filing default and have the CTO lifted in a timely manner or at all. Shareholders of the Company may suffer a significant decline or total loss in value of its investment in the Company’s common shares as a result.
Under the terms of the convertible debenture (the “Convertible Debenture”) between the Company and its substantial shareholder China Investment Corporation (“CIC”), it is an event of default if the Company’s common shares are suspended from trading on the TSX for more than a period of five trading days and CIC may declare the amounts owing under the Convertible Debenture and related deferral agreements immediately due and payable and may take steps to enforce payment thereof.
The Company will continue to take steps to address the going concern issues raised by the external auditors and explore available options to attempt to obtain an unmodified opinion on the 2019 Financial Statements. The Company will make further announcements with respect to the status of the 2019 Annual Filings as and when appropriate.
SHAREHOLDERS OF THE COMPANY AND POTENTIAL INVESTORS ARE ADVISED TO EXERCISE CAUTION WHEN DEALING IN THE SECURITIES 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. SouthGobi produces and sells coal to customers in China.
Contact:
Investor Relations
Office: +852 2156 1438 (Hong Kong)
+1 604 762 6783 (Canada)
Email: info@southgobi.com
Website: www.southgobi.com