SouthGobi Resources Receives Deferral of Payment on Amounts Owing on Turquoise Hill Facility

SouthGobi Resources Ltd. (TSX: SGQ,HKEX:1878) announced that it has received an extension from Turquoise Hill Resources Ltd. (TSX:TRQ,NYSE:TRQ) for the amounts owing on a US$10-million revolving credit facility provided to the company.

However, the deferral is subject to certain conditions and limitations, including the completion by April 30, 2015 of the transaction contemplated by the Sale and Purchase Agreement between Turquoise Hill and National United Resources Ltd., as amended by an agreement dated December 2, 2014.

As quoted in the press release

On December 4, 2014, Turquoise Hill agreed on a limited deferral of repayment on the US $3.8million principal owing on the Turquoise Hill Facility as follows:

1.  US$1.9 million in principal and all interest that has accrued on and under the Turquoise Hill Facility up to and including May 30, 2015 shall become due and payable on May 30, 2015; and
2. US$1.9 million in principal and all interest that has accrued on and under the Turquoise Hill Facility from June 1, 2015 up to and including August 31, 2015 shall become due and payable on August 31, 2015.

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