Photo by: Bloomberg
PERTH (miningweekly.com) – Junior coal developer Aspire Mining is hoping to raise up to A$6-million through in a share placement to fund the exploration of the Nuurstei and Ovoot coking coal projects, and to negotiate a rail agreement in Mongolia.
The company said on Wednesday that the share placement was aimed at raising a minimum of A$2.75-million and a maximum of A$6-million, with Aspire receiving firm commitments totalling A$2.1-million from each of its directors to participate in the capital raise.
Existing shareholders would be invited to participate in the capital raise through a A$2-million priority allocation pool, with each shareholder entitled to subscribe for A$15 000 in new shares.
The shares will be priced at 2c each, representing a 4.7% discount to the company’s closing price on April 24, and every two shares would come with one attaching option, exercisable at 3c each, with a two-year term.
Aspire MD David Paull said on Wednesday that the company was encouraged by the substantial pre-commitment in place, prior to the start of the capital raise.
Funds raised would also go towards debt servicing and general working capital, Paull said.
The Mongolian government recently approved a new national rail policy, which included the extension of a rail from Erdenet to Aspire’s Ovoot coking coal project, and on to the Russian border at Arts Suuri. The new rail line was considered an important connection between Russia, Mongolia, and through the Trans-Mongolian Railway, to China.
The $144-million Ovoot project would have an initial production of five-million tonnes a year, with first production targeted for 2017.