Turquoise Hill Resources (TRQ, TRQ.TO) announced the termination of the lock-up agreement entered into with Aluminum Corporation of China Limited (ACH) or "Chalco" on April 1, 2012 by which Turquoise Hill agreed to tender its shares in SouthGobi Resources Ltd. (SGQ.TO) into a proportional takeover offer to be made by Chalco for up to 60%, but not less than 56%, of the shares in SouthGobi.
Turquoise Hill and Chalco have concluded that the proposed transaction has minimal prospect of obtaining the necessary regulatory approvals within an acceptable timeframe.
As a result, Turquoise Hill and Chalco have agreed to terminate the lock-up agreement, including Chalco's obligation to make a proportional offer.
According to the terms of the initial lock-up agreement, Chalco was to make its offer to all shareholders by July 5, 2012. Turquoise Hill and Chalco twice agreed to extend the time for the offer to be made, with the current offer period set to expire on September 4, 2012.
Turquoise Hill stated that following termination of the lock-up agreement, it will work with SouthGobi to improve performance of the company's business and more fully recognize SouthGobi's operating potential.
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