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Aspire Mining completes $15 million financing for Ovoot early development

The Ovoot Early Development Plan (OEDP) provides for a near-term coking coal operation.
capital raising concept
The Ovoot Project contains one of Mongolia’s largest coking coal JORC Reserves

Aspire Mining Ltd (ASX:AKM) has settled the $15 million strategic financing package that it revealed late August 2018.

Most notably, the company now has a cash position of around $15.6 million.

Aspire is now debt free and fully funded through to completion of all Ovoot Early Development Project (OEDP) feasibility studies.

READ: Aspire Mining is fast-tracking a world-class coking coal project

The strategic financing comprises 476.1 million shares issued to Aspire’s new major shareholder Mr Tserenpuntsag at 2.1 cents for $10.0 million.

A total of 161.3 million shares issued at 2.1 cents to Noble Group Limited (OTCMKTS:NOBGF) repay the balance of US$2.4 million debt principal and accrued interest.

Finally, 80.9 million shares issued at 2.1 cents in relation to the additional placement for $1.7 million.

Debt free to deliver coking coal production from Ovoot

Aspire’s executive chairman David Paull said: “it is very pleasing that Aspire is now in a strong financial position with no borrowings.

“On behalf of the board, I thank our strategic shareholders, Mr Tserenpuntsag and Noble Group, for their support in achieving this financing outcome.

“Their ongoing support, together with that of our broader shareholder base, reflects the attractiveness of the OEDP.

“We look forward to delivering the OEDP feasibility details in early 2019 and quickly progressing towards first coking coal production.”

PFS expected to be complete by January 2019

Aspire is expediting the pre-feasibility study (PFS) in relation to the OEDP and other feasibility studies in relation to the Erdenet to Ovoot road and associated infrastructure.

Ferrostaal Mining Services is progressing with the OEDP PFS which focuses on a low ash and low strip ratio carve-out from the existing Ovoot Reserve.

The PFS for the OEDP is expected to be completed by January 2019.

Director snaps up shares in placement

Shareholders have voted at the recently held annual general meeting (AGM) to approve the issue of 1.19 million shares to director Hannah Badenach.

Badenach participated in the share placement back in September 2018 and as a director of the company requires shareholder approval as per the ASX Listing Rules.

By participating in the placement, Badenach further aligns herself with shareholders increasing her total holding to 13.9 million shares.

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