SouthGobi Announces Dismissal of Money-laundering Accusations

SouthGobi Resources Ltd. (TSX:SGQ,HKEX:1878) announced that an alleged money-laundering charge against its three former employees has been dismissed by the Capital City Prosecutor in Mongolia. The company also announced the transfer of the tax investigation case case back to court.

As quoted in the press release:

As previously detailed by the Company in its Management Discussion and Analysis (‘MD&A’) for the three months ended September 30,2014 which is available at www.sedar.com, the Company has been subject to investigations by the State Investigations Agency (‘SIA’) into allegations against the Company and some of its former employees regarding possible breaches of Mongolia’s money laundering And taxation laws.

A report issued by the experts appointed by the SIA on June 30, 2013 and again in January 2014 had recommended that the alleged accusations of money laundering against the Company’s three (3) former employees be withdrawn.

The Company has been notified that on December 30, 2014, the Capital City Prosecutor had decided to dismiss the allegations of money laundering.

President and CEO Enkh-Amgalan Sengee said:

We welcome the decision to dismiss the accusations of money laundering. We will continue to cooperate as required with the relevant authorities concerning the case of alleged violations of Mongolian tax law which has been brought back to Court.

Click here for the SouthGobi Resources Ltd. (TSX:SGQ,HKEX:1878) press release