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Aspire Mining substantial shareholder lifts stake to 27.49% from 16.1%

Mr Tserenpuntsag has acquired a further 507 million shares, taking his overall stake to more than 914.5 million.
Bags of money
The company is on a path to early production of ‘fat’ coking coal in Mongolia

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.

READ: Aspire Mining delivers robust PFS, on path to early coking coal production from Ovoot

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.

READ: Aspire Mining set to benefit from China’s preference for non-seaborne coal imports

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.

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