Subject to certain conditions and limitations, Turquoise Hill Resources has deferred amounts owing on the US$10 million revolving credit facility provided to SouthGobi Resources as initially announced on May 25, 2014 and updated on August 31, 2014.
On December 4, Turquoise Hill agreed on a limited deferral of repayment on the US$3.8 million principal owing on the facility. US$1.9 million in principal and all interest that has accrued on and under the facility up to and including May 30, 2015, shall become due and payable on that date. US$1.9 million in principal and all interest that has accrued on and under the facility from June 1, 2015 up to and including August 31, 2015 shall become due and payable on August 31.
This limited deferral is subject to certain conditions and limitations, including the completion by April 30, 2015 of the transaction contemplated by the sale and purchase agreement between Turquoise Hill and National United Resources, as amended by an agreement dated December 2, 2014.
SouthGobi continues to seek additional financing to fund its operations and meet its objectives, and in this regards on December 3 announced the completion of the private placements for the issue of new common shares for gross proceeds of US$9.0 million. In addition, on December 3, the company paid the November 2014 cash interest instalment due on the secured convertible debenture held by a wholly owned indirect subsidiary of China Investment Corporation (CIC).
SouthGobi last week announced the stepping down of president and CEO Ross Tromans, effective December 12, and the appointment of Enkh-Amgalan Sengee as president and CEO. Mr Tromans remain with the company and on the Board of Directors until December 31.
Enkh-Amgalan Sengee has been president and executive director of SouthGobi Sands LLC (SGS), the company’s wholly-owned subsidiary, since July 2013. He joined SGS from Clean Energy LLC, a subsidiary of Newcom Group, where he was CEO and led the successful development of the first commercial scale wind farm in Mongolia. Prior to this, he gained extensive experience in the extractive industry through a number of senior management positions at the MCS Group of Companies.