Aspire’s biggest shareholder forks out another $2.75M

• Aspire Mining’s biggest shareholder has backed the company with another $2.75 million today
• Tserenpuntsag Tsedendamba sought to buy 1.6 billion company shares for $33.5 million back in September, with Aspire directors keen to say yes
• The placement will be confirmed at Aspire’s upcoming AGM and, if it gets the thumbs up, will give Tserenpuntsag a 51 per cent interest in the company
• He will also appoint two Directors to Aspire’s board, but the company said today minority shareholders will always be represented by three-to-two independent Directors.
• Aspire shares closed 16.67 per cent up today, worth 1.4 cents each

Aspire Mining’s biggest shareholder continues to back the company with his wallet, pumping another $2.75 million into it today.

Mongolian investor Tserenpuntsag Tsedendamba first backed the company in September by proposing to buy up 1.6 billion Aspire shares for $33.5 million, effectively giving him a 51 per cent holding in the coal and rail company.

Aspire Directors unanimously recommended shareholders support the placement.

Tserenpuntsag further confirmed his support when he shared a Letter of Intent a week and a half later.

Today, Tserenpuntsag committed to exercising all 153.3 options he currently holds in the company, each worth 1.8 cents. This is a strong premium to Aspire’s last closing price of 1.2 cents per share and raises nearly $3 million for the company.

On top of this, it will bring Tserenpuntsag’s control in the company to 52.5 per cent if the massive placement is approved at the company’s upcoming AGM (Annual General Meeting).

The ownership of the company is leaving investors nervous, however, because with it comes two Tserenpuntsag-appointed Directors to the company board — leaving only three independent company Directors.

In an effort to maintain fair representation for minority shareholders, Aspire outlined some conditions to the placement today:

• Should a current independent Director resign or be removed from the board, Aspire will promptly appoint a replacement independent Director to minority shareholders
• If a different director needs to be appointed, Aspire will ensure they will not be aligned with or nominated by Tserenpuntsag, nor will Tserenpuntsag’s current directors take part in the selection process

Aspire Executive Chairman David Paull said these two conditions represent Tserenpuntsag’s commitment to supporting the company.

“Having an invested Mongolian partner to help achieve our ambition of delivering substantial value for all shareholders is paramount and we are delighted with the ongoing support provided by our largest shareholder, Mr Tserenpuntsag,” David said.

Aspire is focused on developing premium coking coal in Mongolia.

Company shares rose over today’s trading period but didn’t quite reach Tserenpuntsag’s option price.

Shares closed 16.67 per cent up, worth 1.4 cents each in a $46.57 million market cap.