Placement shares will come with a 1:2 attaching option exercisable at $0.025 and expiring 12 months from the date of issue.
The completion of the capital raising is an important milestone for Aspire as it will allow for the acquisition of a further interest in the Nuurstei Coking Coal Project and a debt restructure.
Aspire currently owns 45% of the Nuurstei Coking Coal Project located in Mongolia and it intends to exercise a US$1 million option to acquire an additional 45% interest in the project.
Funds raised under the placement will also be used for a 2017 drilling and sampling program at Nuurstei.
The exercise of the option, combined with the proposed debt restructure, is expected to strengthen the company’s balance sheet and provide a clear path for financing the further development of the Nuurstei Project.
Nuurstei is seen as a starter project for Aspire while it progresses the 100% owned Ovoot Coking Coal Project, Mongolia’s second largest coking coal project.
During 2016, a maiden JORC resource at Nuurstei was estimated measuring 12.85 million tonnes.
The mining license application process is advanced and additional drilling and sampling is required to convert Inferred resources into Indicated resources and build mine life.
A conceptual mining study shows a competitive delivered cost for hard coking coal into northern Chinese markets based on trucking.
The placement will open this Wednesday 5 July and can accept oversubscriptions valued at $1 million.