SouthGobi Resources says Mongolia deal canned
TORONTO (miningweekly.com) – Mongolia-focused miner SouthGobi Resources on Wednesday said the proposed sale of its noncore Tsagaan Tolgoi deposit had been cancelled.
The company said it was evaluating options for this noncore asset.
Toronto-listed SouthGobi, which holds substantial coal deposits in Mongolia, was in discussions with Sydney-listed Modun Resources to sell two licences, the Tsagaan Tolgoi mining licence and the Ajlyn Talbai exploration licence.
The intention was for the licences to augment Modun’s 489-million-ton Nuurst thermal coal project, in central Mongolia, and provide a significant platform to build and develop a portfolio of licences in the SouthGobi coking coal district.
On April 16, SouthGobi announced that the Mineral Resources Authority of Mongolia (MRAM) had requested SouthGobi suspend exploration and mining activity on certain licences owned by SouthGobi Sands, a fully owned division of SouthGobi.
The MRAM’s request was in connection with the Mongolian government’s review of the proposed $926-million takeover bid by Aluminium Corporation of China (Chalco) for up to 60% of SouthGobi. International mining companies are increasingly facing tougher political hurdles in Mongolia, which is growing wary of China’s increasing ownership of its mining sector.
SouthGobi earlier this month said it believed Chalco would drop the takeover offer.
SouthGobi stocks had taken a beating since its mining licences had been suspended, with its Toronto-listed shares trading 4.67% lower at C$2.86 apiece on Wednesday. The company’s stocks had lost about 70% of its value in the last year.
Edited by: Creamer Media Reporter
The company said it was evaluating options for this noncore asset.
Toronto-listed SouthGobi, which holds substantial coal deposits in Mongolia, was in discussions with Sydney-listed Modun Resources to sell two licences, the Tsagaan Tolgoi mining licence and the Ajlyn Talbai exploration licence.
The intention was for the licences to augment Modun’s 489-million-ton Nuurst thermal coal project, in central Mongolia, and provide a significant platform to build and develop a portfolio of licences in the SouthGobi coking coal district.
On April 16, SouthGobi announced that the Mineral Resources Authority of Mongolia (MRAM) had requested SouthGobi suspend exploration and mining activity on certain licences owned by SouthGobi Sands, a fully owned division of SouthGobi.
The MRAM’s request was in connection with the Mongolian government’s review of the proposed $926-million takeover bid by Aluminium Corporation of China (Chalco) for up to 60% of SouthGobi. International mining companies are increasingly facing tougher political hurdles in Mongolia, which is growing wary of China’s increasing ownership of its mining sector.
SouthGobi earlier this month said it believed Chalco would drop the takeover offer.
SouthGobi stocks had taken a beating since its mining licences had been suspended, with its Toronto-listed shares trading 4.67% lower at C$2.86 apiece on Wednesday. The company’s stocks had lost about 70% of its value in the last year.
Edited by: Creamer Media Reporter
0 Response to "SouthGobi Resources says Mongolia deal canned"
Post a Comment