SouthGobi Resources Ltd. (TSX:SGQ) announced the re-investigation by the State Investigation Agency into alleged violations of Mongolian taxation law against three former employees of SouthGobi Sands LLC and against SGS as “civil defendant” had been completed and that the case had been transferred back to the Second District Criminal Court of Justice for trial.

As quoted in the market news,

The trial commenced on January 28, 2015. On January 30, 2015, the panel of appointed judges from the Second District Criminal Court of Justice found the three (3) former employees guilty of tax evasion and gave sentences ranging from 5 years and 6 months to 5 years and 10 months of imprisonment in the correctional facilities of strict regimen in Mongolia.

President and CEO Mr. Enkh-Amgalan Sengee stated

We are extremely disappointed by the Court’s decision. The conclusions reached by the experts as highlighted in their report presented to the Court are erroneous and there is a complete lack of evidence to support this harsh verdict. We fully support our former employees and will lodge an immediate appeal against the Court’s decision.

Click here for the full SouthGobi Resources Ltd. (TSX:SGQ) press release