Business
SouthGobi Announces Notice From Mongolian Government Plenipotentiary and Designation of Company's Mining Deposits as Mineral Deposits of Strategic Importance
VANCOUVER, BC / ACCESS Newswire / May 8, 2025 / SouthGobi Resources Ltd. (TSXV:SGQ)(HK:1878) (...
About this update from Southgobi Resources Ltd.
[{"type":"text","content":"SouthGobi Announces Notice From Mongolian Government Plenipotentiary and Designation of Company's Mining Deposits as Mineral Deposits of Strategic ImportanceVANCOUVER, BC / ACCESS Newswire / May 8, 2025 / SouthGobi Resources Ltd. (TSXV:SGQ)(HK:1878) (\"SouthGobi\" or the \"Company\") announces that, on April 2, 2025, Southgobi Sands LLC (\"SGS\"), the Company's wholly-owned Mongolian subsidiary, received a letter from a plenipotentiary representative of the Mongolian government (the \"Notice\") which invited SGS to participate in negotiations to determine the Mongolian state's ownership interest in SGS, being the legal entity which holds the Company's coal mining licenses in Mongolia.The Notice states that, in furtherance of Mongolia's National Wealth Fund Law which was passed in April 2024, the Mongolian government resolved on February 5, 2025 to appoint a plenipotentiary representative (the \"Plenipotentiary Representative of the Mongolian Government\") to negotiate with legal persons holding a mining license for a deposit designated by the Mongolian government as a strategically important deposit (\"Mineral Deposits of Strategic Importance\") in relation to determining the proportionate interest the Mongolian state has in such legal entity or whether to replace the Mongolian state's interest with a royalty interest.The Company has been advised by its Mongolian legal counsel that the Government of Mongolia is empowered to participate on an equity ownership basis with the license holder in the exploitation and/or mining of each Mineral Deposit of Strategic Importance on terms to be negotiated between the Government of Mongolia and such license holder. Based solely on the knowledge of the Company's Mongolian legal counsel, the Company is aware that various other license holders of Mineral Deposits of Strategic Importance have entered into similar negotiations with the Plenipotentiary Representative of the Mongolian Government.As at the date of this announcement, the deposits covered by four of the Company's Mongolian mining licenses have been designated as Mineral Deposits of Strategic Importance by Mongolian government authorities. The relevant mining licenses relate to the Company's Ovoot Tolgoi Mine and the Soumber Deposit.On April 24, 2025, SGS initiated preliminary discussions with the Plenipotentiary Representative of the ...