(RTTNews.com) - Turquoise Hill Resources Ltd. (TRQ, TRQ.TO) Wednesday said it has entered into a share purchase agreement with National United Resources Holdings Limited, a Hong Kong-based public company, for the sale of a 29.95 percent stake in SouthGobi Resources Ltd., an integrated coal mining, development and exploration company operating in Mongolia.
Under the terms of the agreement Turquoise Hill has agreed to sell 56.10 million common shares that it owns in the capital of SouthGobi at a price of C$0.455 per common share.
Following this, Turquoise Hill would continue to hold 48.71 million shares of SouthGobi, representing approximately a 26 percent stake in SouthGobi.
About C$12.8 million in cash will be received by the company at closing and deferred consideration of C$12.8 million will be payable one year after the closing of the transaction.
Closing of the deal is expected to occur before November 30.
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