Aspire Mining Limited has announced that it has entered into a binding agreement to acquire the Xanadu Mines Limited (“Xanadu”) 50% interest in the Ekhgoviin Chuluu Joint Venture (“ECJV”), with the Noble Group retaining its 50% ownership. The ECJV currently has a 60% interest in the Nuurstei Coking Coal Project (“Nuurstei 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, and the opportunity to do so jointly with the Noble Group serves to enhance the existing Strategic Alliance between the two firms which includes a number of transactions relating to project financing, supply chain logistics, port and rail capacity access.

Aspire will acquire Xanadu’s 50% interest in the ECJV by agreeing to issue 10 million shares in Aspire to Xanadu including upon the ECJV entering into an agreement to undertake feasibility studies in the Nuurstei Project area or upon the Mineral Resource Authority of Mongolia granting a mining license over all or part of the Nuurstei Project area. Aspire has agreed to issue a further 5 million shares in Aspire to Xanadu in the event that 30 million tonnes of JORC compliant resources are identified in the Nuurstei Project area.

 Aspire will assume Xanadu’s obligation to pay for an additional interest in the Nuurstei Project and will

pay the minority vendors in the Nuurstei Project US$200,000 on the grant of a Mining License over the

project area. The ECJV will then hold a 90% interest in the Nuurstei Project. The minority interest of

10% will be free carried through to production.

 The Noble Group will retain their 50% interest in the ECJV, along with marketing rights over all Nuurstei

Project production. Noble and Aspire have also agreed to work together to identify additional near term

Mongolian coking coal production opportunities with terms to be agreed on a case by case basis .

The Nuurstei Project was acquired by the ECJV in mid-2011 and immediately had drilling success.

Subsequent test work has shown that the Nuurstei Project contains a low volatile bitumous coal with

moderate to high ash levels and low sulphur. Washed coal has high indicative coking properties

however further testwork is required.

The Nuurstei Project is located just 10 kms from the Khuvsgul provincial capital of Moron in northern

Mongolia and is relatively close to a public sealed road currently being constructed connecting Moron to

Erdenet and funded through the Government road building programme. The Nuurstei Project is also

within a relatively short trucking distance to the proposed Northern Rail Line being developed by

Aspire’s subsidiary, Northern Railways LLC, and thus potentially a foundation customer for this

proposed rail line. Preliminary indications are that Nuurstei Project coking coal could also be a useful

blending partner for Aspire’s wholly owned Ovoot Project coking coal, and there would be a number of

other operational and marketing synergies between the two operations.

 Aspire’s Managing Director, Mr David Paull, said “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”.

 “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”.

Source: Aspire Mining