SouthGobi names new exec director as part of private placement deal

Mongolian coal miner SouthGobi Resources has appointed Ted Chan as an executive director of the company, it said in a filing to the Hong Kong Stock Exchange on Tuesday March 3.

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The appointment is in accordance with the private placement agreement between SouthGobi and Novel Sunrise, which was announced on February 24.

Chan currently serves as the president of Novel Sunrise, a private investment holding company registered in the British Virgin Islands with affiliated Chinese-based enterprises in real estate, logistics and supply-chain management.

Previously, he was gm of Beijing Wanhai Real Estate Development and chief representative of Ocean Trading Corp at its Beijing office, according to the filing.

SouthGobi, which is also Toronto-listed, said in its filing that it had completed the issuance of an initial tranche of some 10 million mandatory convertible units to Novel Sunrise for about $3.5 million following the approval of the private placement by the Toronto Stock Exchange (TSX).

The TSX has placed SouthGobi under remedial delisting review in connection with its reliance on the financial hardship exemption from approval by its shareholders of the private placement, the miner said.