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ASPIRE MINING LIMITED — Capital/Financing Update 2014
Jun 12, 2014
64354_rns_2014-06-12_baa3df18-cf3b-440c-b963-df95aca53687.pdf
Capital/Financing Update
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ASX/MEDIA RELEASE By electronic lodgement | Page 1 of 2
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13 June 2014
XANADU DIVESTS EKHGOVIIN CHULUU COKING COAL JOINT VENTURE
HIGHLIGHTS
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Xanadu has entered binding agreements to sell its 50% interest in the Ekhgoviin Chuluu coking coal joint venture to Aspire Mining.
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Xanadu will receive consideration of up to 15 million shares in Aspire Mining based on joint venture milestones.
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Aspire Mining is well placed to advance and add value to the Nuurstei Coking Coal Project in northern Mongolia, including synergies with its Ovoot Coking Coal Project.
COKING COAL DIVESTMENT
Xanadu Mines Ltd (ASX: XAM – “ Xanadu ”) is pleased to announce that it has entered into a binding agreement to sell its 50% interest in the Ekhgoviin Chuluu LLC joint venture (“ Ekhgoviin Chuluu ”) to ASX listed Aspire Mining Ltd (ASX:AKM) (“ Aspire Mining ”). The joint venture currently has a 60% interest (a 30% effective interest to Xanadu) in the Nuurstei Coking Coal Project (“ Nuurstei ”) in northern Mongolia.
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 joint venture 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 joint venture spending obligations including a US$200,000 milestone payment. The Noble Group will retain their 50% interest in the joint venture, along with marketing rights over all Nuurstei Project production.
Xanadu’s Managing Director, George Lloyd, said “Our exit from Ekhgoviin Chuluu is aligned with our commitment to reduce expenditure commitments and focus on our copper exploration projects. Aspire has established a strategic position in north-western 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.”
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CONTACT George A. Lloyd Managing Director T: +852 6397 3308 [email protected]
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AUSTRALIA MONGOLIA ASX c/o Company Matters Pty Limited 2nd Khoroo, Military Town XAM Level 12, 680 George Street AOS Street, Bayanzurkh District Sydney NSW 2000 Ulaanbaatar, Mongolia T: +612 8280 7497 T: +967 5011 0211
Xanadu Mines Ltd (ASX: XAM) is an exploration company that has assembled a significant exploration portfolio across Mongolia’s porphyry belts. These belts are part of the larger Central Asian Orogenic Belt – one of the last great exploration frontiers known to host large copper porphyry deposits – and Mongolia is emerging as a globally significant copper province.
ASX/MEDIA RELEASE By electronic lodgement | Page 2 of 2
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For further information, please contact: George A. Lloyd Managing Director T: +852 6397 3308 [email protected]
www.xanadumines.com
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