Friday, June 6, 2014

Turquoise Hill "Contemplating" Selling SouthGobi to a Third Party Before June 30

June 5 (Cover Mongolia) The $10 Million Shareholder Loan Facility Agreement entered between Turquoise Hill Resources (TSX:TRQ, NYSE:TRQ) and SouthGobi Resources (TSX:SGQ, HKEx:1878) had a few parts redacted. Namely the name of a “third party” that Turquoise Hill is “contemplating” selling all its shares held in SouthGobi (Page 5 of the agreement, page 10 of the PDF file).

The agreement also states that contemplated takeover of SouthGobi by that third party will occur on or before June 30, 2014 (page 8 of the agreement, page 14 of the PDF).                                                                                                      

This loan agreement was disclosed in full after HKEx close on Wednesday, June 3 and just before the market opening in North America. TRQ was trading flat for most of Wednesday just to close 3.87% up towards the end. The minor rally continued on Thursday to just a further 3.19%.


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