Aspire raises funds for Ovoot

THE BOURSE WHISPERER: Aspire Mining has raised $32.8 million via a placement that it will use to progress its Ovoot coking coal project in northern Mongolia.

The placement consisted of 80 million new fully paid ordinary shares at 41 cents per share to institutional and sophisticated investors.

Aspire also announced that its major shareholder, SouthGobi Resources was a major supporter of the placement and exercised its anti-dilution top-up rights to hold a 19.9 per cent shareholding.

SouthGobi is set to take up approximately 14.3 million new shares under the placement.

“The funds raised will allow Aspire to complete pre-feasibility and feasibility studies on the Ovoot project and facilitate an aggressive exploration program which we expect to add further tonnes to the overall project and drive long term shareholder value,” Aspire Mining managing director David Paull said in the company’s announcement to the Australian Securities Exchange.

“We are very pleased with the support for the Placement.

“We have been able to bring on board investors who are interested in our long term growth aspirations and the strong demand for the Placement demonstrates market support for the Ovoot coking coal project.

“Our latest drill results to the north of the existing Ovoot Resource area suggest we will be able to expand the size of the project as we continue our exploration program over the coming winter months.”

The funds raised from the Placement will be used for:

– Further exploration of the Ovoot Basin within the next 12 months;

– Infill drilling to increase the Resource and establish a Mongolian Registered Reserve;

– Completion of a pre-feasibility study and feasibility study regarding the Ovoot project;

– Application for a Mongolian Mining License over the Ovoot Resource;

– Completion of a Rail pre-feasibility study in relation to the rail link to Erdenet;

– Application for a rail license for the Ovoot to Erdenet rail link; and

– Administration and working capital.