SouthGobi Resources Signs Strategic Alliance Agreement

SouthGobi Resources Ltd. (TSX:SGQ) reports that it has signed a Strategic Alliance Agreement with Winsway Coking Coal Holdings Ltd. and a contract for the sale of 3.2 million tonnes of coal in 2011.

The press release is quoted as saying:

Under the Strategic Alliance Agreement, SouthGobi commits to sell at least two million tonnes of coal to Winsway per year. Winsway will work with SouthGobi to increase the market value of SouthGobi’s Mongolian coal and Winsway will provide priority access to its logistics assets. The agreement has a five-year term. Any specific future coal sales will be subject to mutual agreement on terms, including pricing.

SouthGobi’s President and CEO, Alexander Molyneux says:

“The 2011 sales contract with Winsway represents the largest single coal-sales contract in SouthGobi’s history and demonstrates fulfillment of key objectives in SouthGobi’s growth strategy.” “The Strategic Alliance Agreement also will increase volumes of SouthGobi’s coal sales and add value over time, building on of Winsway’s demonstrated capability to deliver Mongolian coal to consumers in China”.

Click here to access the entire press release.

Click here to access SouthGobi’s company profile.