Turquoise Hill Resources has entered into an agreement with Novel Sunrise Investments Ltd, a private investment holding company with affiliated Chinese-based enterprises in real estate, logistics and supply-chain management, providing for the sale of its remaining stake in SouthGobi Resources.

Under the terms of the agreement, Turquoise Hill has agreed to sell the remaining common shares that it owns in the capital of SouthGobi to Novel Sunrise at a price of Can$0.35 per common share payable in cash.

Half of the aggregate purchase price, representing approximately Can$8.5 million, will be received by the company at closing and the balance of approximately Can$8.5 million will be payable on the first anniversary of the closing of the transaction.

Turquoise Hill has also been informed that, concurrently with the entering into of its share purchase agreement with the purchaser, SouthGobi has entered into a subscription agreement with the Novel Sunrise in respect of a private placement of 21.75 million mandatory convertible units convertible on a one-for-one basis into new common shares to be issued by SouthGobi of which 10,131,113 are expected to be issued upon closing of a first tranche of the private placement on or about March 3 and of which the remainder of the private placement, representing up to an additional 11,618,887 common shares, is expected to close concurrently with the transaction under the share purchase agreement with the purchaser.

Turquoise Hill Resources is an international mining company focused on copper-gold and coal mines in Mongolia. The company’s primary operation is its 66% interest in the Oyu Tolgoi copper-gold-silver mine in southern Mongolia.

Resource Center Whitepapers, Videos, Case Studies

Conferences & Events

No events