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Aspire Mining enters funding agreement for the Erdenent to Ovoot rail project

Published by
World Coal,

Aspire Mining Ltd has entered into a funding arrangement with Northern Railways LLC rail funding adviser, Signum Resources Corp., to ensure meeting continuous development targets, set by the Rail Concession Agreement recently executed with the Government of Mongolia (GOM), for the Erdenet to Ovoot rail project.

The Rail Concession Agreement provides Northern Railways with the exclusive right to build and operate the 547 km rail project for a period of 30 years. The conditions of the agreement are to be met within an 18 month period, including carrying out a bankable feasibility study.

Completion of the first stage of the feasibility study requires funding of US$1.0 million (of the total contract sum of US$6.5m plus VAT) to ensure immediate commencement.

Signum will provide a US$600 000 loan to Northern Railways and a placement of US$200 000 at AUS$0.02 per share in Aspire to fund the completion of the first stage of the feasibility study. The corporation will also will support Northern Railways in sourcing the funding for the balance of the study costs and to identify strategic partners and new funding sources for Northern Railways.

Northern Railways will work exclusively with China Railway Construction Corporation (China Railways) subsidiaries, China Railway 20 Bureau Group Corporation (CR20G) and China Railway First Survey & Design Institute (FSDI), to complete the feasibility study and negotiate the terms of the EPC contract to be awarded to CR20G.

Edited from press release by Harleigh Hobbs

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