Aspire to raise $2.2m for coal project

Subiaco-based explorer Aspire Mining has announced a $2.2 million placement to sophisticated investors for drilling at its Nuurstei coal project in northern Mongolia.

It’s expected the drilling results will be used in the preparation of a pre-feasibility study for a mining licence, and for the completion of an environmental impact assessment.

The raising includes a commitment by non-executive director Neil Lithgow to the early exercise of 5 million Aspire options at the same price as the placement shares issue price, being 5 cents per share.

Aspire and the Noble Group each hold a 50 per cent interest in the Ekhgoviin Chuluu Joint Venture, which owns 60 per cent of the Nuurstei project and has a right to increase its interest to 90 per cent.

Aspire commenced drilling at the Nuurstei project site last month, with completion expected by the end of October.

The 2011 reverse circulation and diamond drill holes will be completed at an average 100 metre depth and will be mostly confined to the southern part of the main tenement.

Argonaut Securities was lead manager to the capital raising, which is expected to settle on September 19.

Aspire shares were up slightly this morning, trading at 5.5 cents at 11am.