Aspire Mining’s pro rata renounceable rights issue announced on November 3 is now open and the Prospectus and Entitlement & Acceptance Forms have been dispatched to eligible shareholders. The rights issue is open for subscriptions until the scheduled close on Monday, December 4.

The 6:5 rights issue is priced at A$0.012 with a 1:4 attaching option. It aims to raise up to A$16.5 million.

The rights issue is fully underwritten and the company’s major shareholder, Singapore-listed Noble Group, has pre-committed to take up its entitlement in full. This will take its interest in Aspire to 19.9%.

Patersons Securities has been appointed lead manager to fully underwrite the rights issue.

Aspire intends to use the funds raised to expedite development of its Nuurstei Coking Coal Project in Northern Mongolia.

The company hopes the funds will enable it to fast track Nuurstei into production within 18 months.

Subject to successful completion of the Rights Issue, a proposed A$2 million drilling and exploration program will be undertaken with the aim of increasing resources and establishing a reserve, including the conversion of inferred resources to the indicated category. A new resource model for Nuurstei is planned to be completed in the first quarter of 2018.