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SouthGobi Announces Discloseable and Connected Transaction Deferral of Payment Obligations Under Convertible Debenture and Amended and Restated Cooperation Agreement
VANCOUVER, BC / ACCESS Newswire / March 20, 2025 / SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:187...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"SouthGobi Announces Discloseable and Connected Transaction Deferral of Payment Obligations Under Convertible Debenture and Amended and Restated Cooperation AgreementVANCOUVER, BC / ACCESS Newswire / March 20, 2025 / SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) (\"SouthGobi\" or the \"Company\") announces that reference is made to the announcements of the Company dated November 11, 2022, March 26, 2023, August 30, 2023, October 13, 2023, November 17, 2023, January 19, 2024, March 19, 2024, and April 30, 2024 (collectively, the \"Announcements\") and the management proxy circular of the Company dated July 25, 2024 (the \"July 2024 Management Proxy Circular\") in relation to the deferral agreements under the Convertible Debenture (as defined below). Unless otherwise specified, terms used in this announcement shall have the meaning as defined in the Announcements and the July 2024 Management Proxy Circular.The March 2025 Deferral AgreementThe Company announces that, on March 20, 2025, the Company and its subsidiaries, namely Southgobi Sands LLC and SGQ Coal Investment Pte. Ltd., entered into a new deferral agreement (the \"March 2025 Deferral Agreement\") with JD Zhixing Fund L.P. (\"JDZF\"), the registered holder of the Company's US$250 million Convertible Debenture issued on November 19, 2009 (the \"Convertible Debenture\") and the Company's largest shareholder, pursuant to which JDZF agreed to grant the Company:a deferral of the cash interest, payment-in-kind interest (\"PIK Interest\"), management fees and related deferral fee of approximately US$111.6 million (the \"2024 Deferred Amounts\") which will be due and payable to JDZF on or before August 31, 2025 pursuant to the deferral agreement dated March 19, 2024 and the deferral agreement dated April 30, 2024;a deferral of the cash interest payment of approximately US$7.9 million (the \"May 2025 Cash Interest\") which will be due and payable to JDZF on May 19, 2025 under the Convertible Debenture;a deferral of the cash interest of approximately US$8.1 million and PIK Interest (the \"November 2025 PIK Interest\") of approximately US$4.0 million (collectively, the \"November 2025 Cash and PIK Interest\") which will be due and payable to JDZF in each case on November 19, 2025 under the Convertible Debenture; anda deferral of the management fees of approximately US$6.1 million whic...