VANCOUVER, BC / ACCESS Newswire / February 13, 2025 / SouthGobi Resources Ltd. (TSX-V:SGQ)(HK:1878) ("SouthGobi" or the "Company") Reference is made to the announcements of the Company dated July 31, 2023, August 18, 2023, February 26, 2024, May 22, 2024, June 12, 2024 and January 20, 2025 (the "Announcements") in relation to the Mongolia tax audit. Unless otherwise specified, capitalised terms used herein shall have the same meanings as those defined in the Announcements.
As disclosed in the announcement of the Company dated January 20, 2025, the Company's wholly owned subsidiary in Mongolia, Southgobi Sands LLC ("SGS"), received a resolution ("Resolution") from the Tax Dispute Resolution Council ("TDRC") on January 10, 2025 in relation to the Tax Audit. As set forth in this Resolution, the TDRC has determined to reduce the re-assessed amount of the tax penalty against SGS from approximately US$80.0 million to US$26.5 million (the "Revised Re-assessment Result"). According to the applicable Mongolian laws, SGS is entitled to file an appeal to the Administrative Court regarding the Revised Re-assessment Result within a 30-day period from the date of receiving the Resolution (the "Appeal Period").
After careful consideration and consultation with the Company's independent tax consultant in Mongolia, the Company has determined not to pursue a further appeal of the Revised Re-assessment Result with the Administrative Court within the Appeal Period. As a result, the Revised Re-assessment Result will impact the Company's financial statements for the year ended December 31, 2024.
Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.
About SouthGobi
SouthGobi, listed on the Hong Kong Stock Exchange and the TSX Venture Exchange, owns and operates its flagship Ovoot Tolgoi coal mine in Mongolia. It also holds the mining licences of its other metallurgical and thermal coal deposits in South Gobi region of Mongolia. SouthGobi produces and sells coal to customers in China.
Contact: Investor Relations Mr. Ruibin Xu Office: +1 604 762 6783 (Canada) +852 2156 1438 (Hong Kong) Website: www.southgobi.com |
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
Certain information included in this press release that is not current or historical factual information constitutes forward-looking statements or information within the meaning of applicable securities laws (collectively, "forward-looking statements"), including information about the impact of theRevised Re-assessment Result on the Company'sfinancial statements for the year ended December 31, 2024 and the potential of the Company coming to an agreement with the Mongolian Tax Authority over a repayment plan for the outstanding amount of the Revised Re-assessment Result. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "could", "should", "seek", "likely", "estimate" and other similar words or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on certain factors and assumptions including, among other things, the Company's ability to successfully negotiate with the Mongolian Tax Authority over a repayment plan for the outstanding amount of the Revised Re-assessment Result and other similar factors that may cause actual results to differ materially from what the Company currently expects. Actual results may vary from the forward-looking statements. Readers are cautioned not to place undue importance on forward-looking statements, which speaks only as of the date of this disclosure, and not to rely upon this information as of any other date. While the Company may elect to, it is under no obligation and does not undertake to, update or revise any forward-looking statements, whether as a result of new information, further events or otherwise at any particular time, except as required by law. Additional information concerning factors that may cause actual results to materially differ from those in such forward-looking statements is contained in the Company's filings with Canadian securities regulatory authorities and can be found under the Company's profile on SEDAR+ at www.sedarplus.ca.
SOURCE: SouthGobi Resources Ltd.
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