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Aspire Mining Welcomes Agreement On Oyu Tolgoi Development Plans

Aspire Mining (ASX:AKM) has welcomed the signing of the Oyu Tolgoi Underground Mine Development and Financing Plan between Rio Tinto (NYSE:RIO), Turquoise Hill Resources and the Mongolian Government.

This provides a conducive environment to attract foreign investment to the country, which could in turn benefit Aspire as it progresses the A$6 million capital raising.

It also bodes well for Aspire's Ovoot and Nuurstei coking coal projects as well as the key Erdenet to Ovoot Railway.

The Plan represents a key milestone for Mongolia and confirms the country as an attractive jurisdiction for large scale capital investment.

Highlighting this potential, the original Oyu Tolgoi Investment Agreement in October 2009 had facilitated substantial investment and growth in the Mongolian economy.

The Plan addresses the key outstanding shareholder issues and sets out an agreed basis for the funding of the project.

Oyu Tolgoi, which Aspire has no interest in, is located in the South Gobi region of Mongolia and is a world class copper-gold mine with some US$6 billion invested to date.

"The timing of this announcement is fortuitous given that Aspire is currently conducting a prospectus based capital raising seeking to raise up to A$6 million," managing director David Paull.

"The raising will close on 29th May 2015."

Aspire recently had a strong start to its $6 million capital raising with firm commitments totalling up to $2.1 million already received.

Capital Raising

The company is raising up to $6 million through the capital raising priced at $0.02 per share to further explore the Nuurstei and Ovoot Coking Coal projects, progress Northern Railways, and meet debt servicing costs.

It includes one free attaching option for every two new shares subscribed. These have a two-year term with an exercise price of $0.03 each.

Existing shareholders will have a $2 million Priority Allocation pool with each shareholder having a priority entitlement of $15,000 or such other amount as specified.

The company's directors have committed to participate with non-executive Neil Lithgow committing up to $2 million.

The capital raising seeks to raise a minimum of $2.75 million with the company entitled to accept oversubscriptions of up to $1 million.

Recent Activity

Aspire recently clocked two key milestones for its proposed Erdenet to Ovoot Railway after receiving a formal invitation to commence negotiations with the Mongolian Government's multi departmental Working Group for a Rail Concession.

The company has also entered into a Consortium Agreement with China Railways 20 Bureau Group Corporation (CR20G) who will provide its subsidiary Northern Railways with exclusive rights to technology required to construct the Erdenet to Ovoot Railway.

CR20G is a wholly owned subsidiary of China Railways Construction Corporation (HKEx:1186, XSHG;601186), a Fortune-500 company and one of the world's largest international rail engineering construction firms.


Aspire Mining represents a world class coking coal mine and now rail opportunity as wheels are beginning to turn in Mongolia with the Oyu Tolgoi Rio announcement and CR20G agreement.

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