Corrs Chambers Westgarth is advising Aspire Mining Limited on its $20.1 million placement and strategic partnership with SouthGobi Resources.
Under the agreement, SouthGobi will acquire a 19.9 per cent holding in Aspire through the issue of 105.7 million shares. The funding by SouthGobi will help to accelerate the exploration of Aspire's Ovoot Coking Coal Project.
The strategic partnership will involve SouthGobi providing technical and other assistance to further the development of Ovoot and provide Aspire with assistance and advice in relation to governmental and regulatory issues.
SouthGobi is one of the largest coal miners in Mongolia with a market capitalisation of $US2.2 billion ($2.26 billion) as at 30 June 2010. Its shareholders include Ivanhoe Mines and sovereign wealth fund China Investment Corporation.
Through the partnership, Aspire hopes to benefit from SouthGobi's Asian relationships and experience in developing and financing coal mines in Mongolia.
The transaction is being led by partners Russell Philip and Rob Franklyn with lawyer James Nicholls.