HONG KONG – Alexander Molyneux, President and CEO of SouthGobi Resources Ltd. (TSX: SGQ, HK: 1878), announced today that SouthGobi Resources has entered into an agreement with Aspire Mining Limited (“Aspire”) (ASX: AKM) to acquire 105,726,650 common shares of Aspire in a private placement at a price of A$0.19 per share, for an aggregate of approximately A$20.1 million.
On completion of the private placement, SouthGobi will hold approximately 19.9% of Aspire. SouthGobi also will have the right to nominate one director to the Board of Aspire and the right to maintain its proportionate shareholding in Aspire for a period of two years.
Closing of the transaction is expected to be on or before January 31, 2011 and is subject to the approval of the Australian Stock Exchange and the Foreign Investment Review Board (FIRB).
“Aspire has moved quickly to establish a measured plus indicated JORC resource in excess of 275.7 million tonnes of coking coal in Mongolia,” said Mr. Molyneux. “It’s a business that has the potential to replicate the SouthGobi story and we appreciate the opportunity to participate in Aspire’s growth as a friendly strategic partner.”
About Aspire Mining
Aspire Mining Limited is a coal resource company which owns 100% of the Ovoot Coking Coal Project in Mongolia along with the Nurant and Shanagan Coal Projects. In addition, the company owns a 45% interest in the Windy Knob gold and base metals project located in Western Australia.
Based on Aspire’s disclosure, the Ovoot Coking Coal Project has a measured resource of 93.3 million tonnes, an indicated resource of 182.4 million tonnes and an additional inferred resource of 55.0 million tonnes. The raw coal results to date from samples taken below the oxidized horizon indicate the potential for a large tonnage, high-ranking coking coal resource.
Initial data results on the combined seams below the oxidation level are: Inherent Moisture (IM) – 0.6%, Ash – 17.8%, Volatiles – 28%, Sulphur – 1.1%, CN (Crucible Swelling Index) – 7.8, Energy Kcal/kg – 6,761. Data results are on an air dried average basis for raw coal samples and based on nine holes and 124 samples. Further coal quality test work, including studies on washing yield and washed product quality are ongoing.
The categories of resources under JORC are similar to those which would be reported under Canadian Institute of Mining (CIM).
About SouthGobi Resources
SouthGobi Resources is focused on exploration and development of its Permian-age metallurgical and thermal coal deposits in Mongolia’s South Gobi Region. The company’s flagship coal mine, Ovoot Tolgoi, is producing and selling coal to customers in China. The company plans to supply a wide range of coal products to markets in Asia.
Information contacts, SouthGobi Resources
Layton Croft, Vice President External Affairs and Corporate Citizenship (Hong Kong) +852 2156 7023
Steven Feldman, Investor Relations Manager (Vancouver) +1 604 331 9813
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