Ivanhoe unit takes stake in Aspire Mining

Shares in Aspire Mining Ltd rose after an Ivanhoe Group company took a substantial stake in the junior coal explorer.

Aspire shares were up 2.5 cents, or 13.16 per cent, at 21.5 cents at 1346 AEDT.

Aspire, a Perth-based company, on Monday said the Ivanhoe-controlled SouthGobi Resources had taken a 19.9 per cent interest in Aspire via a placement of 105.7 million shares at a price of 19 cents per share, raising $20.1 million.

Aspire also said the companies, which were focused on Mongolia, had formed a strategic partnership to fast-track development of Aspire's wholly-owned Ovoot coking coal project in the country's north.

Aspire chairman David McSweeney said the deal with SouthGobi Resources would speed up the company's transformation from a coal explorer to a coal mine developer.

SouthGobi president and chief executive Alexander Molyneux said Aspire was an exciting strategic partner, given its large volume of potentially high-quality coking coal in Mongolia.

Mr Molyneux said SouthGobi Resources would provide Aspire with in-country expertise.

SouthGobi Resources, which is 57 per cent held by Canada's Ivanhoe Mines Ltd, produces coal at its Ovoot Tolgoi mine in Mongolia's south.

Aspire is yet to secure offtake partners for the Ovoot project and says only 10 per cent of the area has been explored. © 2010 AAP

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