TORONTO, ONTARIO--(Marketwired - Nov. 24, 2014) - China Investment Corporation issues the following press release in accordance with Canadian Securities Administrators' National Investment 62-103:
1. Name and address of the offeror
China Investment Corporation, by its indirectly wholly-owned subsidiary
Land Breeze II S.a r.l. ("LB")
c/o China Investment Corporation
16F-19F, New Poly Plaza
No. 1 Chaoyangmen Beidajie
Dongcheng
Beijing 100010
China
2. The designation and number or principal amount of securities and the
offeror's securityholding percentage in the class of securities of which
the offeror acquired ownership or control in the transaction or
occurrence giving rise to the obligation to file the news release, and
whether it was ownership or control that was acquired in those
circumstances.
China Investment Corporation previously filed early warning reports in
respect to a US$500 million convertible debenture (the "Debenture") LB
purchased from SouthGobi Resources Ltd. ("SouthGobi"), in respect to the
exercise on March 29, 2010 of SouthGobi's right to call for the
conversion of up to US$250 million of the Debenture and in respect to
the receiving of paid in kind interest on November 21, 2013. China
Investment Corporation is a sovereign wealth fund of the People's
Republic of China.
Pursuant to the Debenture, since March 29, 2010, LB has acquired
ownership of 13,274,681 common shares of SouthGobi, which includes
6,206,833 common shares previously issued and reported upon, and
7,067,848 common shares issued on November 21, 2014 in each case, in
satisfaction of the paid in kind component of the interest accrued on
the Debenture.
3. The designation and number or principal amount of securities and the
offeror's securityholding percentage in the class of securities
immediately after the transaction or occurrence giving rise to the
obligation to file a news release.
After giving effect to the issuances noted in item 2 above, LB owns and
controls 37,917,292 common shares of SouthGobi representing
approximately 19.51% of the issued and outstanding common shares of
SouthGobi as of November 21, 2014. LB also continues to own US$250
million of principal amount under the Debenture which, if converted at
the current conversion price of Cdn$8.88 (and the currency exchange rate
of 0.8851) would represent approximately 31.8 million additional common
shares. If the Debenture in the principal amount of US$250 million that
remains outstanding after the issuances noted in item 2 above is fully
converted into SouthGobi common shares at the current conversion price
of Cdn$8.88 and the currency exchange rate of 0.8851 then, together with
the actual common shares owned or controlled by LB as of the date
hereof, LB would own or control a total of approximately 69.7 million
common shares or approximately 30.82% of the common shares of SouthGobi.
4. The name of the market in which the transaction or occurrence that gave
rise to the news release took place.
Not applicable. New shares were issued by SouthGobi in satisfaction of
the paid in kind component of the interest accrued on the Debenture.
5. The value, in Canadian dollars, of any consideration offered per
security if the offeror acquired ownership of a security in the
transaction or occurrence giving rise to the obligation to file a news
release.
The amount of interest in respect of the 7,067,848 common shares issued
on November 21, 2014 was Cdn$4.5 million, and the price of the common
shares was Cdn$0.64 per share.
6. The purpose of the offeror and any joint actors in effecting the
transaction or occurrence that gave rise to the news release, including
any future intention to acquire ownership of, or control over,
additional securities of the reporting issuer.
LB holds SouthGobi common shares and the Debenture for investment
purposes. LB has rights under the Debenture to convert the remaining
US$250 million principal amount under the Debenture into common shares
of SouthGobi. Subject to applicable regulatory and contractual
restrictions LB may from time to time dispose of or acquire additional
securities of SouthGobi.
A copy of the amended early warning report to which this press release
relates has been filed on www.sedar.com under SouthGobi's issuer profile.
China Investment Corporation
16F-19F, New Poly Plaza
No. 1 Chaoyangmen Beidajie
Dongcheng
Beijing 100010
China