Special Needs Territory in Umnugobi. On February 13, 2015, the Soumber mining licenses (MV-016869, MV-020436 and MV-020451) (the “License Areas”) were included into a special protected area (to be further referred as Special Needs Territory, the “SNT”) newly set up by the Umnugobi Aimag’s Civil Representatives Khural (the “CRKh”) to establish a strict regime on the protection of natural environment and prohibit mining activities in the territory of the SNT. On July 8, 2015, SouthGobi Sands LLC, a wholly owned subsidiary of the Company (“SGS”), and the chairman of the CRKh, in his capacity as the respondent’s representative, reached an agreement (the “Amicable Resolution Agreement”) to exclude the License Areas from the territory of the SNT in full, subject to confirmation of the Amicable Resolution Agreement by the session of the CRKh. The parties formally submitted the Amicable Resolution Agreement to the appointed judge of the Administrative Court for her approval and requested a dismissal of the case in accordance with the Law of Mongolia on Administrative Court Procedure. On July 10, 2015, the judge issued her order approving the Amicable Resolution Agreement and dismissing the case, while reaffirming the obligation of CRKh to take necessary actions at its next session to exclude the License Areas from the SNT and register the new map of the SNT with the relevant authorities. Mining activities at the Soumber property cannot proceed unless and until the Company obtains a court order restoring the Soumber mining licenses and until the License Areas are removed from the SNT. On July 24, 2021, SGS was notified by the Implementing Agency of Mongolian Government that the license area covered by two mining licenses (MV-016869 and MV-020451) are no longer overlapping with the SNT. The Company will continue to work with the Mongolian authorities regarding the license area covered by the mining license (MV-020436).
Appears in 2 contracts
Samples: iis.aastocks.com, iis.aastocks.com
Special Needs Territory in Umnugobi. On February 13, 2015, the Soumber mining licenses (MV-016869, MV-020436 and MV-020451) (the “License Areas”) were included into a special protected area (to be further referred as Special Needs Territory, the “SNT”) newly set up by the Umnugobi Aimag’s Civil Representatives Khural (the “CRKh”) to establish a strict regime on the protection of natural environment and prohibit mining activities in the territory of the SNT. On July 8, 2015, SouthGobi Sands LLC, a wholly owned subsidiary of the Company LLC (“SGS”), ) and the chairman of the CRKh, in his capacity as the respondent’s representative, reached an agreement (the “Amicable Resolution Agreement”) to exclude the License Areas from the territory of the SNT in full, subject to confirmation of the Amicable Resolution Agreement by the session of the CRKh. The parties formally submitted the Amicable Resolution Agreement to the appointed judge of the Administrative Court for her approval and requested a dismissal of the case in accordance with the Law of Mongolia on Administrative Court Procedure. On July 10, 2015, the judge issued her order approving the Amicable Resolution Agreement and dismissing the case, while reaffirming the obligation of CRKh to take necessary actions at its next session to exclude the License Areas from the SNT and register the new map of the SNT with the relevant authorities. Mining activities at the Soumber property cannot proceed unless and until the Company obtains a court order restoring the Soumber mining licenses and until the License Areas are removed from the SNT. On July 24, 2021, SGS was notified by the Implementing Agency of Mongolian Government that the license area covered by two mining licenses (MV-016869 and MV-020451) are no longer overlapping with the SNT. The Company will continue to work with the Mongolian authorities regarding the license area covered by the mining license (MV-020436).
Appears in 2 contracts
Samples: www1.hkexnews.hk, www1.hkexnews.hk
Special Needs Territory in Umnugobi. On February 13, 2015, the entire Soumber mining licenses license and a portion of SGS’ exploration license No.9443X (MV-016869, MV-020436 and MV-0204519443X was converted to mining license MV-025436 in January 2016) (the “License Areas”) were included into a special protected area (to be further referred as Special Needs Territory, the Territory “SNT”) newly set up by the Umnugobi Aimag’s Civil Representatives Khural (the “CRKh”) to establish a strict regime on the protection of natural environment and prohibit mining activities in the territory of the SNT. On July 8, 2015, SouthGobi Sands LLC, a wholly owned subsidiary of the Company (“SGS”), SGS and the chairman Chairman of the CRKh, in his capacity as the respondent’s representative, reached an agreement (the “Amicable Resolution Agreement”) to exclude the License Areas from the territory of the SNT in full, subject to confirmation of the Amicable Resolution Agreement by the session of the CRKh. The parties formally submitted the Amicable Resolution Agreement to the appointed judge of the Administrative Court for her approval and requested a dismissal of the case in accordance with the Law of Mongolia on Administrative Court Procedure. On July 10, 2015, the judge issued her order approving the Amicable Resolution Agreement and dismissing the case, while reaffirming the obligation of CRKh to take necessary actions at its next session to exclude the License Areas from the SNT and register the new map of the SNT with the relevant authorities. Mining activities at the Soumber property cannot proceed unless and until the Company obtains a court order restoring the Soumber mining licenses and until the License Areas are removed from the SNT. On July June 29, 2016, the Mongolian Parliament and CRKh election was held. As a result, the Company is aware that additional action may be taken in respect of the SNT; however, the Company has not yet received any indication on the timing of the next session of the CRKh. Commercial Arbitration in Hong Kong On June 24, 20212015, First Concept served a notice of arbitration (the “Notice”) on SGS was notified by in respect of a coal supply agreement dated May 19, 2014 as amended on June 27, 2014 (the Implementing Agency “Coal Supply Agreement”) for a total consideration of Mongolian Government that $11.5 million. The arbitral proceedings (the license area covered by two mining licenses (MV-016869 and MV-020451“Arbitration”) are no longer overlapping with deemed to have commenced on June 24, 2015, as the SNTdate when the respondent received the Notice. The Company firmly rejects the allegations of First Concept in the Notice as lacking any merit. The Arbitration was held in the fourth quarter of 2016 and the decision is not expected until the second quarter of 2017. There can be no assurance, however, that the Company will continue prevail in the Arbitration. Should SGS be unsuccessful in the Arbitration, the Company may not be able to work with re-pay the Mongolian authorities regarding sum of $11.5 million. In such case, this may result in an event of default under the license area covered by CIC Convertible Debenture and CIC would have the mining license right to declare the full principal and accrued interest owing thereunder immediately due and payable. Such an event of default under the CIC Convertible Debenture or the Company’s inability to re-pay the sum of $11.5 million to First Concept could result in voluntary or involuntary proceedings involving the Company (MV-020436including bankruptcy).
Appears in 1 contract
Samples: www1.hkexnews.hk