SouthGobi Resources announces withdrawal of legal proceeding against subsidiary of the Company
VANCOUVER, British Columbia, Jan. 30, 2019 (GLOBE NEWSWIRE) -- SouthGobi Resources Ltd. (TSX: SGQ; HK: 1878) (“SouthGobi” or the “Company”) announces that, further to its press release dated September 20, 2018, the Company has received notice that on January 24, 2019 the Ejinaqi People’s Court of Inner Mongolia Autonomous Region of China rendered a judgment allowing the application by Jiayuguan Xiyuan Trading Co., Ltd. (“Xiyuan”) to voluntarily withdraw its lawsuit against Inner Mongolia SouthGobi Energy Co., Ltd., a subsidiary of the Company, and Ejinaqi Fulemeng Energy Industry Co., Ltd., in relation to a dispute over certain coal sales contracts. Xiyuan’s application cited a lack of evidence.
SouthGobi, listed on the Toronto and Hong Kong stock exchanges, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining licences of its other metallurgical and thermal coal deposits in South Gobi Region of Mongolia. SouthGobi produces and sells coal to customers in China.