Noble group raises stake in Mongolian railways firm in exchange for debt repayment

ZGM DAILY

2018-01-09 15:30 GMT+8

According to The Business Times daily, the Noble Group LLC had bought an additional 10 percent stake n Northern Mongolian railways Limited (NMRL), a subsidiary of Australia-listed Aspire Mining Limited, for SD 1.4 million.

NMRL owns a concession to build, operate and transfer a railway line in Mongolia through its 100 percent owned subsidiary Northern Railway LLC, a Mongolian registered company.

The consideration was satisfied through the conversion of debt owed to Noble group`s wholly owned subsidiary Noble Resources International Pte Ltd (NRIPL) by Ovoot coking coal Pte Ltd, a wholly owned subsidiary of Aspire.   

The shares carried a negative book value of AUD 833.8. With the latest deal, NRIPL`s shareholding in NMRL becomes an associated company of Noble.

Noble said that the amount was arrived on a willing buyer-willing seller basis, after taking into consideration, the future development prospects of Aspire`s coal and railways projects, how it strengthens Noble`s position in the Mongolian market, and the group`s desire to consolidate its shareholding interests in Aspire.       

NRIPL also increased its shareholding interest in Aspire from 18.2 percent to 19.9 percent on December 11, 2017, after subscribing for the full amount of its entitlement in a renounceable rights issue and agreeing to sub-underwrite a portion of the shortfail.

Additionally, a working group led by the Governer of Khuvsgul aimag worked in Burentogtokh, Tsagaan-Uul, and Tsetserleg soums to monitor current situations of wintering and to hear the public`s opinion.

Within the frames, the working group visited a drilling site of Aspire Mining in Undur Denj and put a halt on the operation. The local authorities were ordered to monitor the excavation. The Governer explained that the company`s exploration license needs to be investigated: thus, the operation has been suspended for an indefinite period.      

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