News report suggests that SouthGobi faces bankruptcy if unsuccessful to solve Mongolian tax dispute

Poor due diligence, global market demand issues, lack of modern rail transport —

A once promising Mongolian resource company falls on tough times…

SouthGobi was once worth more than C$3-billion, and its TSX-listed shares peaked at C$21.99 in 2008. The stock fell as low as C$0.34 in February 2015 It was trading at C$0.50 a share on Friday. ( news report August 15 2015

Coal producer SouthGobi Resources continues according to news reports to seek an amicable resolution of its tax dispute with the Mongolian government.

Faint to reach a settlement might — with a court sanctioned financial penalty — trigger events of default with a Chinese funding partner and eventual bankruptcy say news reports.

SouthGobi, a subsidiary of Rio Tinto-owned Turquoise Hill Resources, had in a January been found financially liable as a ‘civil defendant’ for a penalty of about $18-million, following a criminal tax investigation case.

To review the full report, go to:

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.