SOUTHGOBI RESOURCES ISSUES USD 32 MILLION ADDITIONAL STOCKS

“Southgobi Resources”, which extracts coal at the Ovoot Tolgoi deposit, informed that they will issue an additional 55 million stocks to two investor companies before 14th July.

The first investor is the “Citic Merchant” company, which will buy 50 million addition stocks to the value of USD 28.7 million. Therefore, they will own 17% of “Southgobi Resources”, and appoint one member on the board of directors.

The second investor is “Swiss Life Gestion Privee” which will buy 5 million addition stocks for USD 2.9 million, and own 2% in “Southgobi Resources”.

A single stock unit of “Southgobi Resources” is currently being sold for 0.71 Canadian dollars on the Toronto and Hong-Kong Stock Markets.

“Southgobi Resources” plans to repay the debts with the income from this exchange to “Turquoise Hill Resources” and the “Chinese Investment Corporation”.

Source: bloomberg