SouthGobi Announces New Payment Deferral Agreement

SouthGobi Resources Ltd. has revealed a new deferral agreement on March 20, 2025, with JD Zhixing Fund L.P. This involves deferring payment obligations under a Convertible Debenture initially issued in 2009. This agreement encompasses various deferred payments amounting to approximately US$137.7 million, due by August 31, 2025.

The company will defer payments including cash interest, PIK interest, and management fees. As a part of the agreement, a deferral fee ranging from 1.5% to 6.4% per annum will be applied, based on previous financial arrangements.

The deferral agreement awaits acceptance from the TSX Venture Exchange and approval from disinterested shareholders, fulfilling Canadian securities law requirements. The agreement aims to ease the company's financial burden, offering flexibility to explore other funding options or strategic plans.