SouthGobi Resources is an integrated coal mining, development and exploration company operating in Mongolia.
The move comes after the company sold 29.95% stake in the Mongolian coal operation in July last year to National United Resources.
Turquoise Hill will sell 48,705,155 common shares in SouthGobi at a price of C$0.35 per share in cash.
The company will receive C$8.5m at closing of the transaction and the remaining C$8.5m on the first anniversary of the closing.
Novel Sunrise will have an option to buy additional shares provided that the company will own no more than 29.99% interest in SouthGobi.
Subject to approvals from Canadian and Hong Kong stock exchange and closing conditions, the deal is expected to be concluded by 31 March 2015.
With this transaction, Turquoise Hill will no longer control any shares of SouthGobi.
