SouthGobi Resources Unit Secures 235 Million Yuan Loan from Khan Bank

MT Newswires Live

10/14

SouthGobi Resources (HKG:1878) said its Mongolian unit, Southgobi Sands, has signed an 18-month secured loan agreement with Khan Bank for up to 235 million yuan, according to a Monday Hong Kong bourse filing.

Shares of the firm were up over 1% in Tuesday morning trade.

The loan carries a 10% annual interest rate, with interest-only payments for the first 12 months and principal repayments over the final six months.

It is secured by first-ranking pledges over the company's properties, mining assets, and receivables at the Nariin Sukhait coal mine in southern Mongolia.

Proceeds will fund working capital, operating costs, taxes, and payables.

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