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Settlement adds to SouthGobi financial pressure

Mongolia-focused coal producer SouthGobi Resources (TSX:SGQ) has signed a US$13.89 million settlement deed with First Concept Industrial Group over an outstanding debt, following heightened concerns expressed by management about SouthGobi’s ongoing financial viability.

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The company says continuing production problems at its flagship Ovoot Tolgoi mine, debenture payments and a potential claim by a Chinese customer have maintained financial pressures.