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Aspire Mining to target early sevelopment of Ovoot with AUD 15 millio

Coal News - Published on Thu, 30 Aug 2018

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Mongolian coal developer, Aspire Mining Limited announced the Ovoot Early Development Plan (OEDP) and related funding commitments. The OEDP will involve mining a low ash and high yielding coal from a starter pit that sits within the previously defined Ovoot orebody and construction of a new private haul road beside the planned 547km rail path for the Erdenet to Ovoot Railway. In support of the OEDP, Aspire is delighted to confirm it has executed definitive and binding documentation (Agreements) with existing substantial shareholder, Mr. Tserenpuntsag Tserendamba, to invest A$10 million as part of a A$15.0 million strategic financing package. Under the Agreements, Mr Tserenpuntsag has agreed to subscribe for 476.2 million new ordinary Aspire shares at A$0.021 per share which on completion will take his holding from 16.6% to approximately 27.4% in Aspire.

The placement to Mr Tserenpuntsag is conditional upon the approval of Aspire shareholders. It is also conditional upon the Company raising an additional A$1.7 million from other investors, of which Aspire has already received binding pre-commitments to subscribe for approximately A$1 million of the A$1.7 million sought. Successful completion of the placement to Mr Tserenpuntsag will increase the undiluted ownership of Aspire held by Mongolian nationals to 32%, making Aspire a true Mongolian/Australian partnership.

Funds raised from these placements will enable Aspire to capitalise on the strong prevailing coal market fundamentals by seeking to unlock early production from its world class, 100% owned Ovoot Coking Coal Project (Ovoot) within a targeted 12 to 15 months after all approvals are received, funding is committed and a decision to mine is made.

The OEDP involves the early works construction of a new private haul road to follow the existing planned rail path from Ovoot to the existing rail head at Erdenet for final rail transportation to international end customers. Identified in the Erdenet to Ovoot Rail Feasibility Study, this will be a temporary haul road (and future rail service road) designed to preserve local water courses and minimise dust emissions.

The Company has identified a low ash high yielding open pit section of the Ovoot orebody which is expected to be well suited to form the basis of the starter pit for the OEDP. The designed production rate at Ovoot under the OEDP will be matched to forecast logistics capacities which are limited by existing Mongolian rail capacity and expected to be in the range of 3 to 4Mtpa from work undertaken during the Nuurstei Feasibility Study. The OEDP will be designed around achieving early production from Ovoot while the Company’s rail infrastructure subsidiary continues to work towards establishing the Erdenet to Ovoot rail connection.

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Posted By : Rabi Wangkhem on Thu, 30 Aug 2018
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