By Devika Patel
Knoxville, Tenn., Jan. 24 - SouthGobi Energy Resources Ltd. said it raised C$111.5 million from two private placements of shares. The first deal, for C$80 million, priced Jan. 7 and the remaining C$31.5 million in shares priced on Jan. 18.
The company sold 10 million common shares at C$8.00 each in the first deal.
SouthGobi sold 3.5 million common shares at C$9.00 apiece in the second deal.
Proceeds from both deals will be used to finance initial development of an open-pit coal mine at SouthGobi's Ovoot Tolgoi coal project in southern Mongolia, for exploration, development, general corporate and administrative purposes.
Based in Vancouver, B.C., SouthGobi Energy Resources explores and develops its Permian-age metallurgical and thermal coal deposits in Mongolia's South Gobi region to supply coal products and electricity to markets in Mongolia and China.
| Issuer: | SouthGobi Energy Resources Ltd.
|
| Issue: | Common shares
|
| Amount: | C$111.5 million
|
| Settlement date: | Jan. 24
|
| Stock symbol: | TSX Venture: SGQ
|
|
|
| Jan. 7 deal
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| Amount: | C$80 million
|
| Shares: | 10 million
|
| Price: | C$8.00
|
| Warrants: | No
|
| Pricing date: | Jan. 7
|
| Stock price: | C$9.50 at close Jan. 4
|
|
|
| Jan. 18 deal
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| Amount: | C$31.5 million
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| Shares: | 3.5 million
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| Price: | C$9.00
|
| Warrants: | No
|
| Pricing date: | Jan. 18
|
| Stock price: | C$10.60 at close Jan 17
|
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