09:33 AEST Oct 12, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.
Perth, Australia (ABN Newswire) - Aspire Mining Limited (ASX:AKM) is pleased to announce it has successfully raised AU$32.8 million via a placement ('the Placement') to further progress its Ovoot Coking Coal Project ('Ovoot') in northern Mongolia.
The Placement consisted of 80 million new fully paid ordinary shares at $0.41 per share to institutional and sophisticated investors.
The Company is also pleased to announce that its major shareholder, SouthGobi Resources Limited has supported the Placement and exercised its anti-dilution top-up rights to hold a 19.9% shareholding. SouthGobi will take up approximately 14.3 million new shares under the Placement.
Aspire's Managing Director, David Paull, said 'the funds raised will allow Aspire to complete pre-feasibility and feasibility studies on the Ovoot project and facilitate an aggressive exploration programme which we expect to add further tonnes to the overall project and drive long term shareholder value.'
Mr Paull added, '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 programme 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.
Argonaut Securities and UBS AG, Australia Branch acted as Joint Lead Managers and Joint Bookrunners to the Placement. Bell Potter Securities acted as co-manager.
Aspire is listed on the ASX and owns 100% of the Ovoot Coking Coal Project in northern Mongolia which, in 2010, announced a maiden 330.7 million tonne resource (93.3mt Measured, 182.4mt Indicated, and 55.0mt Inferred). Aspire is currently targeting resource upgrades at Ovoot, as well as progressing development of key infrastructure including access to rail.
About Aspire Mining Limited:
Aspire Mining Limited (ASX:AKM) owns 100% of the Ovoot Coking Coal Project in northern Mongolia which, in 2010, announced a maiden 330 million tonne resource (93.3mt Measured, 182.4mt Indicated, and 55.0mt Inferred). Aspire is currently targeting resource upgrades at Ovoot, as well as progressing development of key infrastructure including access to rail.
Source:
Aspire Mining Limited
Contact:
Corporate
David Paull
Managing Director
Aspire Mining Ltd
Tel: +61-8-9287-4555
