SouthGobi Resources Ltd. Announces New Payment Deferral Agreement with JD Zhixing Fund L.P.

SouthGobi Resources Ltd., a coal mining company, revealed on April 30, 2024, a new agreement to defer a payment obligation of US$1,100,000 with JD Zhixing Fund L.P. (JDZF), its primary shareholder. This extends the previous deferral set for November 2023, pushing the owed amount's deadline to August 31, 2025. Complying with both Canadian and Hong Kong regulatory frameworks, this agreement hinges on approval from disinterested shareholders and applicable regulatory bodies.

The company will also be required to pay a deferral fee of 6.4% annually on the unpaid balance, a rate favorably compared to industry standards. Monthly operational updates from SouthGobi to JDZF will ensure alignment and facilitate manageable repayment plans. Shareholders and regulatory notifications are planned, with comprehensive documentation to be shared by May 28, 2024, ahead of crucial shareholder meetings.

The announcement indicated that this strategic deferral arrangement would improve SouthGobi’s financial flexibility, providing room to explore further capital acquisition or debt restructuring options. This move is portrayed as beneficial to both the company's immediate financial health and its long-term strategic endeavors, pending approval from independent shareholders.