SouthGobi to sell Tsagaan Tolgoi coal deposit in US$30-million deal
HONG KONG - A subsidiary of Ivanhoe Mines (TSX:IVN) has agreed to sell a Mongolian thermal coal property to Modun Resources Ltd. (ASX:MOU) in a deal valued at US$30 million.
SouthGobi Resources Ltd. (TSX:SGQ) expects to receive US$7.5 million up-front in cash and the rest in shares of Modun, a Mongolia-focused company that's listed on the Australian Stock Exchange.
As a result of the transaction, SouthGobi will become a significant shareholder of Modun and it will have the right to nominate one director to its board.
SouthGobi's main project is the Ovoot Tolgoi mine in southern Mongolia, which will produce coking coal for use in steel making.
The deal announced on Monday will result in the sale of SouthGobi's interest in the Tsagaan Tolgoi thermal coal deposit, which is about 400 kilometres east of SouthGobi's core operations.
Vancouver-based Ivanhoe, which is now controlled by Rio Tinto PLC (NYSE:RIO), owns 57 per cent of SouthGobi Resources.
SouthGobi Resources Ltd. (TSX:SGQ) expects to receive US$7.5 million up-front in cash and the rest in shares of Modun, a Mongolia-focused company that's listed on the Australian Stock Exchange.
As a result of the transaction, SouthGobi will become a significant shareholder of Modun and it will have the right to nominate one director to its board.
SouthGobi's main project is the Ovoot Tolgoi mine in southern Mongolia, which will produce coking coal for use in steel making.
The deal announced on Monday will result in the sale of SouthGobi's interest in the Tsagaan Tolgoi thermal coal deposit, which is about 400 kilometres east of SouthGobi's core operations.
Vancouver-based Ivanhoe, which is now controlled by Rio Tinto PLC (NYSE:RIO), owns 57 per cent of SouthGobi Resources.
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