ENP Newswire -
Release date- 26052014 -
The key commercial terms of the facility are as follows:
maturity date of
interest rate of one month US dollar LIBOR Rate in effect plus 11% margin per annum;
commitment fee of 35% of interest rate payable quarterly in arrears on undrawn principal amount of facility;
front end fee of
draws subject to customary closing conditions and the Company's cash requirements in the ordinary course of business;
facility is subject to certain mandatory prepayment and termination provisions and
the Company to continue to seek other funding alternatives.
Advances made under the facility will be used by the Company to fund operations and meet its ongoing
obligations and future contractual commitments.
As Turquoise Hill owns approximately 56% of the Company's outstanding common shares, its agreement to provide the facility is a related party transaction under applicable Canadian securities laws. The facility is exempt from the formal valuation and minority approval provisions of such laws.
Notwithstanding the provision of the
Therefore the Company is actively seeking additional sources of financing to continue operating and meet its objectives, while continuing to be focused on minimizing uncommitted capital expenditures while preserving the Company's growth options.
SouthGobi is listed on the
SouthGobi is focused on exploration and development of its metallurgical and thermal coal deposits in
Tel: +976 70070710
This document includes forward-looking statements.
Forward-looking statements include, but are not limited to: the Company's expectations of sufficient liquidity and capital resources to meet its ongoing obligations and future contractual commitments, including the Company's ability to secure additional and alternative funding and minimize its uncommitted capital expenditures; the ability of the Company to meet the conditions to be able to draw and receive additional advances under its shareholder loan facility with
When used in this document, the words such as 'plan', 'estimate', 'expect', 'intend', 'may', and similar expressions are forward-looking statements. Although SouthGobi believes that the expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.
Important factors that could cause actual results to differ from these forward-looking statements are disclosed under the heading 'Risk Factors' in SouthGobi's Management's Discussion and Analysis for the year ended
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