Aspire Mining has finalised a restructure of its balance sheet by raising a total of A$3.7 million. This comes at a time when the company has moved to a 90% interest in the Nuurstei Coking Coal Project in Mongolia.
Aspire has closed has closed the prospectus-based placement of shares and options in the company with $1.1 million in cash raised.
When combined with the conversion of $2.6 million of debt and other obligations into equity on the same terms as the completed placement, the company will have increased equity by $3.7 million.
The company is investigating additional funding sources, which includes a coal presale facility to assist in funding pre-development work and a 2017 drilling and sampling program at the Nuurstei project.
It is also evaluating the opportunity to initially commence mining raw coal from Nuurstei for toll washing before delivery to customers in northern China.
Aspire’s managing director David Paull said, “The conclusion of the balance sheet restructure and acquisition of the additional interest in Nuurstei will provide the company the opportunity to pursue a near-term production opportunity to take advantage of improving conditions in the coking coal market.”
A conceptual mining study shows a competitive delivered cost for hard coking coal into northern Chinese markets based on trucking.
Nuurstei is seen as a starter project for Aspire while it progresses the 100% owned Ovoot Coking Coal Project, Mongolia’s second largest coking coal project.
During 2016, a maiden JORC resource at Nuurstei was estimated measuring 12.85 million tonnes.
The mining licence application process is advanced and additional drilling and sampling is required to convert inferred resources into indicated resources and build mine life.