SouthGobi Defers Payment Obligations Under New Agreement

On March 23, 2026, SouthGobi Resources Ltd. announced a deferral agreement with JD Zhixing Fund L.P., delaying payment obligations tied to its US$250 million Convertible Debenture. The company secured deferrals totaling approximately US$167.1 million, including cash interest, payment-in-kind interest (PIK), and management fees, now due by August 31, 2027.

The agreement requires SouthGobi to pay deferral fees of 6.4% per annum on the Convertible Debenture and 1.5% on the cooperation agreement-related deferrals. Furthermore, SouthGobi must provide JDZF monthly financial updates without a fixed repayment schedule.

This deferred arrangement aims to improve SouthGobi's financial flexibility and strengthen its going concern status. Shareholder approval under Canadian securities laws and the Hong Kong Listing Rules is required, with a meeting scheduled for shareholder vote. JDZF holds a 28.87% stake in SouthGobi, participating as both creditor and shareholder in the transaction.