SouthGobi Resources Ltd. (SGQ.TO) shares are lower after the company has released an update on the shareholder loan due to Turquoise Hill Resources Ltd. On October 27, 2015, the Company and Turquoise Hill entered into a deferral agreement, in which Turquoise Hill agreed to defer the repayment of the shareholder loan to April 22, 2016.
The Company had not repaid the shareholder loan on April 22, 2016, and is currently in discussions with Turquoise Hill for a new repayment plan of the shareholder loan which has an outstanding loan principal of US$3.4 million and interest accrued up to April 22, 2016 of US$0.7 million. While SouthGobi believes it will be able to reach such a new repayment plan with Turquoise Hill, there is no assurance that the repayment plan will be favorable to SouthGobi. SouthGobi’s shares were last down 10% at $0.45 apiece. Turquoise Hill’s shares were last down 0.9%.
The stock is down 31.11% or $0.14 after the news, hitting $0.31 per share. About 5,800 shares traded hands or 259.80% up from the average. SouthGobi Resources Ltd (TSE:SGQ) has risen 9.76% since September 17, 2015 and is uptrending. It has outperformed by 4.66% the S&P500.
SouthGobi Resources Ltd. is a coal mining, development and exploration company. The company has a market cap of $85.15 million. The Firm owns coal projects in Mongolia, which includes the Ovoot Tolgoi open pit producing coal mine (Ovoot Tolgoi Mine) and other development projects, including the Ovoot Tolgoi Underground Deposit, the Soumber Deposit and the Zag Suuj Deposit. It currently has negative earnings. These projects are located in the Umnugobi Aimag (South Gobi Province) of Mongolia, within 150 kilometers of each other close to the Mongolia-China border.
Source:SouthGobi Resources Ltd
0 comments:
Post a Comment