CORRS Chambers Westgarth is advising Aspire MiningLimited on its placement and strategic partnership with SouthGobi Resources.
AspireMining has entered into a binding agreement with subsidiary of Ivanhoe Group, SouthGobi,a Mongolian coal producer, which encompasses a A$20.1 million placement andstrategic partnership.
Sharesin Aspire Mining climbed over 10 per cent this week, on news that South Gobi hasacquired the interest.
Under the agreement, SouthGobi will acquire a 19.9 percent holding in Aspire through the issue of 105.7 million shares. The cashinjection by SouthGobi will help to accelerate the exploration of Aspire’s OvootCoking Coal Project.
The strategic partnership will involve SouthGobiproviding technical and other assistance to further the development of Ovootand provide Aspire with assistance and advice in relation to governmental andregulatory issues.
SouthGobi is one of the largest coal miners inMongolia with a market capitalisation of US$2.2 billion as at 30 June 2010. Itsshareholders include Ivanhoe Mines and sovereign wealth fund China InvestmentCorporation.
Aspire said it plans to benefit from SouthGobi's Asianrelationships and experience in developing and financing coal mines inMongolia.
The transaction is being led by partners RussellPhilip and Rob Franklyn with lawyer James Nicholls.