The recently granted 30 year Rail Concession for the Erdenet to Ovoot Railway provides for an 18 month period to complete a number of condition precedents including the completion of a Bankable Feasibility Study.
A Pre-Feasibilty Study was completed in July 2013. A contract was executed in January 2015 with China Railway 20 Bureau Group Corporation (CR20G) to complete the first stage of the Feasibility Study (refer ASX announcement dated 27 January 2015).
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 that this work commences immediately.
Key terms for the financing of this first stage work will comprise:
- A US$600,000 loan by rail and financial adviser Signum Resources Corporation to Northern Railways LLC. The loan period will be the earlier of i) two (2) years, or ii) the date of receipt of further development funding for a minimum of US$15m to be provided to Northern Railways. Interest payable on the loan, totalling US$100,000, will be capitalised until the facility is repaid.
- US$200,000 funding by Aspire out of working capital.
- A commitment by Signum to a placement of 13.89 million shares in Aspire at A$0.02 per share to raise US$200,000.
Provision of this funding will allow CR20G to mobilise and conduct the first stage
Feasibility Study fieldwork before the Mongolian winter in order to maintain the
development schedule for the Erdenet to Ovoot Railway.
The recently granted 30 year Rail Concession for the Erdenet to Ovoot Railway provides for an 18 month period to complete a number of condition precedents including the completion of a Bankable Feasibility Study.
A Pre-Feasibilty Study was completed in July 2013. A contract was executed in January 2015 with China Railway 20 Bureau Group Corporation (CR20G) to complete the first stage of the Feasibility Study (refer ASX announcement dated 27 January 2015).
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 that this work commences immediately.
Key terms for the financing of this first stage work will comprise:
- A US$600,000 loan by rail and financial adviser Signum Resources Corporation to Northern Railways LLC. The loan period will be the earlier of i) two (2) years, or ii) the date of receipt of further development funding for a minimum of US$15m to be provided to Northern Railways. Interest payable on the loan, totalling US$100,000, will be capitalised until the facility is repaid.
- US$200,000 funding by Aspire out of working capital.
- A commitment by Signum to a placement of 13.89 million shares in Aspire at A$0.02 per share to raise US$200,000.
Provision of this funding will allow CR20G to mobilise and conduct the first stage
Feasibility Study fieldwork before the Mongolian winter in order to maintain the
development schedule for the Erdenet to Ovoot Railway.