The ECJV has a 60% interest in the Nuurstei coking coal project in Northern Mongolia, with the ability to raise this interest to 90%.
The transaction fits neatly within Aspire’s strategy to explore and develop Mongolian metallurgical coal projects, according to Aspire.
Aspire managing director David Paull said the opportunity to do so jointly with the Noble Group served to enhance the existing strategic alliance between the two firms, which included a number of transactions relating to project financing, supply chain logistics, port and rail capacity access.
“Aspire is very pleased to become involved in developing the Nuurstei project in partnership with the Noble Group as we investigate the possibility of a start to production from the Nuurstei project pre-rail,” he said.
“There are many potential synergies with the Ovoot coking coal project, not the least of which potentially being an important initial customer for Northern Railways LLC.”
Xanadu will receive consideration of up to 15 million shares in Aspire Mining based on project milestones being met.
Aspire Mining will issue 10 million shares to Xanadu upon the JV agreeing to undertake feasibility studies in the Nuurstei area or the Mineral Resource Authority of Mongolia granting a mining licence over all or part of the Nuurstei area.
Aspire Mining will issue a further 5 million shares upon a JORC-compliant resource of 30 million tonnes of coal being identified within the Nuurstei area.
Aspire Mining will also assume Xanadu’s JV spending obligations.
The Noble Group will retain its 50% interest in the JV, along with marketing rights over all Nuurstei project production.
“Our exit from Ekhgoviin Chuluu is aligned with our commitment to reduce expenditure commitments and focus on our copper exploration projects,” Xanadu managing director George Lloyd said.
“Aspire has established a strategic position in northwestern Mongolia’s coal resources and is well-placed to advance and add further value to the Nuurstei project, including through synergies with its Ovoot coking coal project.”
