SGQ CN: Receives Three Pre mining Agreements In Mongolia

August 23 08:30 2013 Print This Article

SouthGobi  2013-08-22

SOUTHGOBI RESOURCES LTD (“SGQ-T;SGQRF-0”)
– Receives Three Pre-mining Agreements In Mongolia

SouthGobi Resources Ltd. (“SouthGobi” or “Company”) announced the
receipt of three pre-mining agreements (“PMAs”) in Mongolia.
Highlights:

//st

The Mineral Resources Authority of Mongolia (“MRAM”) has
granted SouthGobi three PMAs. The PMAs relate to the Zag Suuj Deposit and
certain areas associated with the Soumber Deposit;

The PMAs will enable SouthGobi to progress to the mining license
application process;

SouthGobi has withdrawn the Notice of Investment Dispute in recognition of
the fact that the grant of these three PMAs, together with the PMA
previously granted on January 18, 2013, resolves the key aspect of that
dispute; and

The granting of the PMAs is an important step for SouthGobi, and signals
its improving relationship with key stakeholders in Mongolia.

//et

Three PMAs have been approved and signed by the Company’s wholly-owned
Mongolian subsidiary, SouthGobi Sands LLC, and MRAM effective August 14,
2013. The PMAs relate to three mineral exploration licenses held by
SouthGobi Sands LLC, being Licenses 9449X, 5267X and 13779X. The three PMAs
were issued by MRAM following due process by the Mongolian authorities in
accordance with the Minerals Law of Mongolia and other applicable laws and
regulations.

License 9449X relates to certain areas associated with the Soumber
Deposit outside the existing mining license and the PMA previously granted
on January 18, 2013. Licenses 5267X and 13779X relate to the Zag Suuj
Deposit. The PMAs will enable SouthGobi to progress to the mining license
application process.

The three PMAs, together with the PMA previously granted on January
18, 2013, were the subject of applications originally made in 2011. On July
11, 2012, SouthGobi announced that SGQ Coal Investment Pte. Ltd., a
wholly-owned subsidiary of SouthGobi Resources Ltd. that owns 100% of
SouthGobi Sands LLC, filed a Notice of Investment Dispute on the Government
of Mongolia pursuant to the Bilateral Investment Treaty between Singapore
and Mongolia. SouthGobi is pleased that the grant of the three PMAs,
together with the PMA previously granted on January 18, 2013, has now been
achieved without the need to commence arbitration or conciliation pursuant
to the Notice of Investment Dispute. Accordingly, SouthGobi has withdrawn
the Notice of Investment Dispute in recognition that this dispute has been
resolved to the benefit of all key stakeholders.

About SouthGobi

SouthGobi is listed on the Toronto and Hong Kong stock exchanges, in
which Turquoise Hill, also publicly listed in Toronto and New York, has a
58% shareholding. Turquoise Hill took management control of SouthGobi in
September 2012 and made changes to the board and senior management. Rio
Tinto has a majority shareholding in Turquoise Hill.

SouthGobi is focused on exploration and development of its
metallurgical and thermal coal deposits in Mongolia’s South Gobi Region. It
has a 100% shareholding in SouthGobi Sands LLC, the Mongolian registered
company that holds the mining and exploration licenses in Mongolia and
operates the flagship Ovoot Tolgoi coal mine. Ovoot Tolgoi produces and
sells coal to customers in China.

TSX closing price for SGQ-T
Date: 2013/08/21
Closing Price: 1.25

TEL:  +976 7007 0710  Mongolia: SouthGobi Sands LLC, Altanbagana
Bayarsaikhan(Mongolia)
EMAIL:  Altanbagana.Bayarsaikhan@southgobi.com

____________________________________________________________
(c)2013 Market News Publishing Inc.  All rights reserved.
Toronto:(416)366-8881   Vancouver:(604)689-1101   Fax:(604)689-1106

view more articles

About Article Author

Saranchimeg Enkhee
Saranchimeg Enkhee

View More Articles
write a comment

0 Comments

No Comments Yet!

You can be the one to start a conversation.

Add a Comment

Your data will be safe! Your e-mail address will not be published. Also other data will not be shared with third person.
All fields are required.