SouthGobi Resources Signs Agreement for New Coal Separation System

SouthGobi Resources Ltd. has announced that its subsidiary, Southgobi Sands LLC, has entered a Build-Transfer agreement with Tangshan Shenzhou Manufacturing Group. This agreement involves constructing a new dry coal separation system in Mongolia at the Ovoot Tolgoi Mine. The contract is valued at approximately RMB53.8 million (USD$7.8 million) and emphasizes Tangshan Shenzhou's role in constructing the system and related facilities. Ownership and intellectual property rights will transfer to Southgobi Sands upon agreed conditions.

Construction is set to take three months, with full payment expected by 2031. Tangshan Shenzhou will oversee various construction tasks, including equipment installation and training services. This transaction, classified as a "discloseable transaction" under the Listing Rules, requires compliance with reporting and announcement mandates due to its scale. SouthGobi expects this initiative to enhance its coal processing capacity and market reach, though no guaranteed financial outcomes are assured.