JOHANNESBURG (miningweekly.com) – Toronto- and Hong Kong-listed SouthGobi has executed an agreement with China Investment Corporation (CIC) for the deferral of cash interest payments.
SouthGobi, which mines coal in Mongolia, has agreed to pay CIC a deferral fee at a rate of 6.4% a year.
A cash interest payment originally due on May 22, 2015, was deferred to November 19, 2015. SouthGobi would pay $1-million every month for six months to April 2016, after which $2-million is due in May 2016.
The cash interest payment due on November 19, 2015 was now to be paid in cash on May 18, 2016.
SouthGobi’s Ovoot Tolgoi produces and sells coal to customers in China.