Due to the termination, Modun will no longer need to raise additional capital to complete the transaction or issue new shares to SouthGobi at the present volume weighted average share price.
Under the termination deed each party has released the other from all obligations and liabilities in relation to the transaction.
With Tsagaan Tolgoi off its radar, Modun will continue to focus on its Nuurst project. Recent exploration work there has suggested the potential for shallow coal seam development and improved coal characteristics.
The Tsagaan Tolgoi transaction had been due to close on June 1 but was postponed to December 31 by mutual agreement.