- Aspire has appointed Argonaut PCF as its exclusive Financial Advisor to consider various funding alternatives available to the Company.
- Aspire is geared towards engineering, permitting and financing the Ovoot Coking Coal Project to underpin coal mining and transportation.
- FEED study on OCCP Coal Handling and Preparation Plant infrastructure and Erdenet Rail Terminal coal storage and transloading infrastructure is complete.
In a significant update, Aspire Mining Limited (ASX: AKM) announced the appointment of Argonaut PCF as its exclusive Financial Advisor. The Company announced that its Board would collaborate with Argonaut PCF to consider all value maximisation alternatives available to the Company.
More importantly, Argonaut PCF will take into account the various funding alternatives available to the Company. The focus will be on non-dilutive alternatives across debt project financing facilities and non-equity hybrid funding options consisting of royalty and profit streaming options.
The recent appointment comes as a significant development as Aspire Mining advances the development of the world-class Ovoot Coking Coal Project (OCCP). Aspire owns 100% of the Ovoot Project and 90% owner of the Nuurstei Coking Coal Project, both north-western Mongolia’s Khuvsgul aimag.
Source: AKM Update, dated 30 July 2021
Overview of Argonaut PCF
Argonaut PCF is Argonaut’s corporate finance division. Notably, Argonaut is a Perth-based integrated investment house, technically driven. It is technically driven and committed towards companies and businesses in natural resource, with market capitalization of A$50 million to A$5 billion.
Aspire’s Chairman mentioned that he is keen to work with Argonaut PCF to unlock the value of OCCP.
Aspire charges ahead with OCCP development
The Company saw significant developments in terms of the Front-End Engineering Design (FEED) Study, expediting the Ovoot Coking Coal project development.
Erdenet Rail Terminal (ERT) coal storage and transloading infrastructure
O2 Mining Limited, engaged by the Company, completed FEED Study on the ERT coal storage and transloading infrastructure. In line with Stage 1 objectives, the trade-off analysis undertook comparison of capital and operating costs together with social and environmental impacts of materials handling technologies and alternative storage concepts. O2 Mining is now working on the second and final phase of the FEED study, expected to be complete within the December 2021 quarter.
OCCP Coal Handling and Preparation Plant infrastructure
Stage 1 of the FEED study on OCCP Coal Handling and Preparation Plant infrastructure was recently finalised by Sedgman Pty Ltd, with a trade-off analysis completed to compare the use of various concepts as well as available technologies.
Sedgman has now advanced with Stage 2 of the FEED Study, aimed at refining the concept level designs and producing capital and operating cost estimates more precisely.
Aspire is geared towards engineering, permitting and financing the Ovoot Coking Coal Project. Meanwhile, the Company intends to mine coking coal by open pit, wash it on-site, followed by trucking the washed coking coal to an Erdenet-based rail terminal facility owned by the Company. The coking coal would be delivered to China and Russia based customers through the existing Mongolian rail network from the facility.
This appointment comes as an essential next step as Aspire continues to tick off engineering activities concerning mine site infrastructure and off mine site road and logistics requirements for OCCP while continuing permitting and other activities to wrap up a Definitive Feasibility Study.
AKM shares traded at A$0.078 on 23 September 2021.