In a recently released report, SouthGobi Energy Resources has highlighted the following developments in the year ended December 31, 2009, and immediately thereafter.
Some 1,330,000 tons of coal were sold from the Ovoot Tolgoi mine.
An open-pit mine study independently prepared by Norwest determined 114.1 million tons of proven and probable surface coal reserves at Ovoot Tolgoi.
Initial National Instrument 43-101 compliant coal resources were established for Soumber, a new deposit about 20 km to the east of Ovoot Tolgoi. The Soumber central field resources consist of measured coal resources of 13.1 million tons, indicated coal resources of 8.3 million tons and inferred coal resources of 55.5 million tons. The deposit has potential to increase coal resources to the east and to the west, as well as at depth. The deposit likely will be able to share common infrastructure with the Ovoot Tolgoi mine. SouthGobi has initiated mine planning and will submit an application for a mining license for development of this project.
The USD500-million convertible debenture financing by China Investment Corporation (CIC) to support major expansion of the company”s coal mining and exploration in southern
The company was listied on the main board of the Toronto Stock Exchange.
Subsequently, in January 2010, SouthGobi completed a global equity offering of 27 million common shares at a price of CAD17.00 per share for gross proceeds of CAD459 million. The shares are traded on the Main Board of the Hong Kong Stock Exchange.