SouthGobi faces Mongolian government negotiations over key deposits

SouthGobi Resources Ltd. (HKEX: 1878) announced that its wholly-owned Mongolian subsidiary, Southgobi Sands LLC ("SGS"), received notification from the Mongolian government regarding potential negotiations over its mining licenses. The Mongolian government, acting under the National Wealth Fund Law passed in April 2024, has designated several of SouthGobi's deposits as "Mineral Deposits of Strategic Importance." This designation empowers the government to negotiate for an equity ownership stake in SGS or replace its interest with a royalty interest. The affected mining licenses include those related to the Ovoot Tolgoi Mine and the Soumber Deposit. SGS has initiated preliminary discussions with the government's Plenipotentiary Representative and intends to fully cooperate. Shareholders are advised to exercise caution when dealing in company shares.