SouthGobi, facing default, raises $9 mln through placement

Mon Dec 1, 2014 7:36am EST
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Dec 1 (Reuters) - SouthGobi Resources Ltd , a Canadian coal miner with operations in Mongolia, said it had raised about $9 million through a private placement of shares.

The company warned in March that a delay in securing additional financing could result in a default of $250 million debentures held by China Investment Corp.

The proceeds will be used to pay the November 2014 installment of the cash interest due on China Investment Corp (CIC) convertible debenture, the company said.

The Company said on Nov. 20 it would delay the CIC interest payment until Dec. 1 as it continued to seek additional funding. (Reporting by Ashutosh Pandey in Bengaluru; Editing by Ted Kerr)