SouthGobi Reaches Tentative Settlement in Canadian Class Action Lawsuit

SouthGobi Resources Ltd., a company listed on the TSX Venture Exchange and the Hong Kong Stock Exchange, has announced a tentative agreement to settle a class action lawsuit filed in Ontario, Canada. The litigation revolves around the company's restatement of certain financial statements.

Filed by Siskinds LLP in 2014, the lawsuit involves former officers and directors, as well as the company's former auditor. Following extensive mediation, a conditional settlement of CAD 6.8 million, covering liability and various legal costs, has been proposed. This amount is covered by the company’s insurance obtained in 2014.

The settlement is pending court approval and notification to class members, anticipated before the end of 2025. SouthGobi maintains its defense stance while awaiting final legal confirmations.