25/10/2010 - 11:41

Ivanhoe takes stake in Aspire Mining

25/10/2010 - 11:41

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Shares in Aspire Mining rose after an Ivanhoe Group company took a substantial stake in the junior coal explorer as part of a $20 million capital raising.

Ivanhoe takes stake in Aspire Mining

Shares in Aspire Mining rose after an Ivanhoe Group company took a substantial stake in the junior coal explorer as part of a $20 million capital raising.

Aspire shares were up 2.5 cents, or 13.16 per cent, at 21.5 cents at at the close of trade.

Aspire, a Perth-based company, said the Ivanhoe-controlled SouthGobi Resources had taken a 19.9 per cent interest in Aspire via a placement of 105.7 million shares at a price of 19 cents per share, raising $20.1 million.

Aspire also said the companies, which were focused on Mongolia, had formed a strategic partnership to fast-track development of Aspire's wholly-owned Ovoot coking coal project in the country's north.

Aspire chairman David McSweeney said the deal with SouthGobi Resources would speed up the company's transformation from a coal explorer to a coal mine developer.

SouthGobi president and chief executive Alexander Molyneux said Aspire was an exciting strategic partner, given its large volume of potentially high-quality coking coal in Mongolia.

Mr Molyneux said SouthGobi Resources would provide Aspire with in-country expertise.

SouthGobi Resources, which is 57 per cent held by Canada's Ivanhoe Mines, produces coal at its Ovoot Tolgoi mine in Mongolia's south.

Aspire is yet to secure offtake partners for the Ovoot project and says only 10 per cent of the area has been explored.

Meanwhile SouthGobi has also announced plans to take a significant stake in Aspire Mining via a $20.1 million capital raising.

South will acquie a 19.9 er cent strategic stake in the company via the issue of 105.7 million shares at 19 cents per share.

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