|By Marketwired .||
|January 7, 2014 07:23 PM EST||
HONG KONG, CHINA -- (Marketwired) -- 01/07/14 -- SouthGobi Resources Ltd. (TSX: SGQ) (HKSE: 1878) (the "Company") understands that on or around January 6, 2014, Canadian law firm Siskinds LLP filed a proposed securities class action against the Company, certain of its current and former senior officers and directors, and its former auditors in the Ontario Superior Court of Justice in relation to the Company's restatement of financial statements, as disclosed on November 8, 2013, November 11, 2013, November 14, 2013 and December 12, 2013 ("the Proposed Claim"). The Company has not been formally served with a copy of the Proposed Claim.
The Company has engaged independent legal counsel in Canada to advise it on this matter and intends to vigorously defend the lawsuit if and when it is served with the Proposed Claim.
SouthGobi is listed on the Toronto and Hong Kong stock exchanges, in which Turquoise Hill Resources Ltd. ("Turquoise Hill"), also publicly listed in Toronto and New York, has a 56% shareholding. Turquoise Hill took management control of SouthGobi in September 2012 and made changes to the board and senior management. Rio Tinto has a majority shareholding in Turquoise Hill.
SouthGobi is focused on exploration and development of its metallurgical and thermal coal deposits in Mongolia's South Gobi Region. It has a 100% shareholding in SouthGobi Sands LLC, Mongolian registered company that holds the mining and exploration licences in Mongolia and operates the flagship Ovoot Tolgoi coal mine. Ovoot Tolgoi produces and sells coal to customers in China.
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