SouthGobi seeks funding to stay afloat

CANADIAN coal producer SouthGobi has sought additional financing to avoid defaulting on a $US250 million ($A273million) convertible debenture after the price of the commodity fell.
SouthGobi seeks funding to stay afloat SouthGobi seeks funding to stay afloat SouthGobi seeks funding to stay afloat SouthGobi seeks funding to stay afloat SouthGobi seeks funding to stay afloat

 

Sadie Davidson

According to the company’s 2014 forecast, it will not have enough revenue to meet obligations, including interest payments on the debenture held by China Investment.

SouthGobi operates the Ovoot Tolgoi metallurgical-coal mine, about 40km from Mongolia’s border with China.

Prices for metallurgical coal fell to a three-year low amid slowing economic growth in China and an increasing supply from Australia.

SouthGobi fell 27% to C53c in Toronto yesterday.

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