Aspire Mining Ltd (ASX:AKM) substantial shareholder Tserenpuntsag Tserendamba has lifted his interest in the Mongolian coal developer to 27.49% by acquiring shares in on-market transactions and participation in a placement.
Mr Tserenpuntsag has acquired almost 507.152 million shares since May 30, 2018, thereby taking his overall stake to more than 914.5 million.
The vast majority of these, in excess of 476 million valued at $10 million, were acquired in the company’s placement last year.
Financing package nets $15 million
This was part of a strategic financing package that netted Aspire a total of $15 million.
Aspire has two key assets in northern Mongolia, the wholly-owned Ovoot Coking Coal Project and a 90% stake in the Nuurstei Coking Coal Project.
Ovoot is a world-class asset containing 255 million tonnes of coal reserves which makes it the second largest coking coal project by reserves in Mongolia.
Aspire is on a path to early production of high-quality ‘fat’ coking coal from Ovoot after receiving robust financial outcomes from a pre-feasibility study (PFS).
The Ovoot Early Development Project (OEDP) PFS has confirmed a compelling strategy to unlock value from a base case starter pit.
This project involves mining relatively low ash, low strip ratio and high yielding ‘fat’ coking coal from a starter pit that sits within the existing 255 million tonnes Ovoot JORC-compliant ore reserve.
The proposed OEDP pit will only mine 15% of the Ovoot project reserves, while the company awaits a rail connection to facilitate mining the remainder.
Further potential upside is expected from the full rail development or further extensions to the OEDP open pit.
A definitive feasibility study is expected to be completed during the September 2019 quarter.