SouthGobi Sells Thermal Coal Property in Mongolia
Vancouver-based resource exploration and mining company, SouthGobi Resources Ltd., announced an agreement to sell its thermal coal property, the Tsagaan Tolgoi Deposit, to Australia’s Modun Resources Limited. The sale will be facilitated through the transfer of South Gobi’s wholly-owned subsidiary holding one mining license (and one exploration license pertaining to that deposit. Under the transaction, SouthGobi expects to receive US$30 million of total consideration, comprising US$7.5 million up-front in cash, US$12.5 million up-front in Modun shares and deferred consideration of an additional US$10 million also payable in Modun shares. The transaction is expected to be completed by June 1, 2012. Modun Resources is developing a thermal coal project in central Mongolia.