Business
Revolving Credit Facility
VANCOUVER, BC / ACCESSWIRE / March 2, 2023 / SouthGobi Resources Ltd. (TSX:SGQ, HK:1878) (" Sout...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"Revolving Credit FacilityVANCOUVER, BC / ACCESSWIRE / March 2, 2023 / SouthGobi Resources Ltd. (TSX:SGQ, HK:1878) (\"SouthGobi\" or the \"Company\") announces that , on March 2, 2023, Inner Mongolia SouthGobi Energy Co., Ltd.** (內蒙古南戈壁能源有限公司) (the \"Borrower\"), an indirect wholly-owned subsidiary of the Company, entered into a revolving loan agreement (the \"Revolving Loan Agreement\") with Inner Mongolia Tianyu Innovation Investment Group Limited** (內蒙古天宇創新投資集團有限公司) (the \"Lender\"), which owns 80% equity interest in Inner Mongolia Yuxinsheng Technology Co., Ltd.** (內蒙古宇鑫盛科技有限公司) (\"IMYTC\") that in turn owns 100% equity interest in Inner Mongolia Tianyu Trading Limited (\"IMTT\"), being the sole limited partner of JD Zhixing Fund L.P. (\"JDZF\"),pursuant to which the Lender agreed to make available to the Borrower an unsecured revolving credit facility (the \"Credit Facility\") up to a maximum principal sum of RMB90,000,000 (the \"Maximum Loan Amount\") with a maturity date, being the date which falls on three months after the date of the Revolving Loan Agreement (the \"Maturity Date\"). JDZF is the registered holder of the Company's US$250 million Convertible Debenture issued on November 19, 2009 and the Company's largest shareholder.The principal terms of the Credit Facility are as follows:All obligations under the Revolving Loan Agreement are due and payable on the Maturity Date.The Credit Facility is a revolving facility, pursuant to which the Borrower will be entitled, but not obligated, to request advances (\"Advances\") under the Credit Facility from time to time, provided that the aggregate amount of the outstanding Advances under the Credit Facility does not exceed the Maximum Loan Amount at any time. The Borrower is entitled to repay all or any portion of the outstanding Advances under the Credit Facility from time to time without bonus or penalty.Advances under the Credit Facility will not accrue interest if the Borrower repays any Advance in full within fifteen (15) days following the date of drawdown (the \"Interest-Free Period\"). If the Borrow...