SINGAPORE, 28 May 2021 &ndash BlackGold Natural Resources Limited (&ldquo BlackGold&rdquo or the &ldquo Company&rdquo , and together with its subsidiaries, the &ldquo Group&rdquo ) is pleased to announce that it has signed a sale and purchase agreement (&ldquo SPA&rdquo ) with MGL Development Pte. Ltd. (&ldquo MGL&rdquo ) following the announcement of a non-binding term sheet signed between BlackGold and MGL in April 2021.

 

The SPA with MGL is in relation to a proposed acquisition of the entire issued and paid-up share capital of Tengri Coal and Energy Pte. Limited (&ldquo TEC&rdquo , and together with its subsidiaries, the " TEC Group" ) by the Company. 

 

Upon completion of the proposed acquisition, it will result in a &ldquo reverse takeover&rdquo (&ldquo RTO&rdquo ) of BlackGold and this transaction is subject to, inter alia, the approval of shareholders of the Company at an extraordinary general meeting to be convened and the approval of the Singapore Exchange Securities Trading Limited (&ldquo SGX-ST&rdquo ).

 

Aligned with the Group&rsquo s strategy to expand its business through mergers and acquisitions, the proposed acquisition will enable the Group to diversify and expand its geographical footprint beyond Southeast Asia. In addition, it will allow the Group to vertically integrate its coal supply chain from mining to electricity power supply.

 

As it is likely that the TEC Group may be eligible for a listing on the Mainboard of the SGX-ST, the Company intends to seek a transfer of its listing from the Catalist Board to the Mainboard of the SGX-ST, in connection with this transaction.

 

Mongolia' s Economic Growth is Expected to Recover Gradually in 2021 and Accelerate in 2022 

 

Over the past three decades, Mongolia has transformed itself with political and economic reforms, tripling its GDP per capita since 1991. Vast quantities of untapped mineral resources in Mongolia have made the country attractive for foreign investments, boosting the country' s economic growth over the years. 

 

According to Mongolia&rsquo s Energy Ministry, around 80% of the electrical supply is produced domestically and 20% is imported.

 

Coal is the primary source of electricity generation in Mongolia, accounting for an estimated 85% of the total electricity generation in the country. Since 1990, the energy consumption in Mongolia has increased 124.62% to reach 7.3 terawatt hour in 2018.

 

According to a recent report by the Asian Development Bank, it projects Mongolia&rsquo s economic growth to recover to 4.8% in 2021 compared to the 5.3% contraction seen in 2020 before climbing to 5.7% in 2022, boosted by domestic demand, investment, increased private credit, and a full recovery across economic sectors.