Aspire Mining Launches US$60M Ovoot Bond Program With US$9.6M Already Placed
Key Takeaways
- Aspire Mining's Mongolian subsidiary KK has raised US$9.56 million across five tranches under the US$60 million Ovoot Bond program as at 9 September 2026, with placement ongoing.
- The Ovoot Coking Coal Project underpinning the bond carries a JORC-compliant Coal Reserve of 130.1 Mt and a post-tax NPV10 of approximately US$1.48 billion at a 60% real IRR.
- Bond proceeds are allocated across processing infrastructure (US$22.3 million), logistics (US$15.4 million), and working capital (US$13.1 million), targeting first coal production in Q4 2027.
- Credit support is provided via Guarantee Agreements from Aspire's largest shareholder (52.47% holder) Mr Tserenpuntsag Tsedendamba and his Gemnet LLC, which reported MNT 129.6 billion in total assets in its 2025 audited accounts.
- KK is considering a second bond program of up to US$60 million, which would bring potential aggregate issuance to US$120 million if fully placed and approved.
Aspire Mining launches the Ovoot Bond on Mongolia’s regulated OTC market
Aspire Mining Limited has reached a significant financing milestone, with its wholly owned Mongolian subsidiary Khurgatai Khairkhan LLC (KK) successfully launching the “Ovoot Bond” on Mongolia’s regulated over-the-counter (OTC) securities market. The launch followed completion of the required securities-registration and foreign-currency approval processes.
As at 9 September 2026, KK had raised US$9.56 million under the current US$60.0 million program across five issued tranches, with placement activities continuing. Proceeds are directed toward development of the Ovoot Coking Coal Project (OCCP).
The bond launch forms part of the staged project financing strategy described in Aspire’s separately released announcement “Ovoot Reserve Update Supports Strong Project Economics” dated 11 September 2026.
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Ovoot Bond at a glance
| Term | Details |
|---|---|
| Program Amount | Up to US$60.0 million, issued in one or more tranches |
| Denomination | US$1,000 per bond; up to 60,000 bonds |
| Coupon / Term | 11%–13% p.a.; program term up to 60 months; each tranche priced and tenored separately |
| Payment Schedule | Quarterly coupons; principal repaid at maturity of each tranche |
| Underwriter | Tenger Capital Securities LLC |
| Credit Support | Separate Guarantee Agreements from Mr Tserenpuntsag Tsedendamba and Gemnet LLC, covering principal, interest, and certain ancillary amounts |
| Investor Market | Mongolian OTC market / professional investors |
| Use of Proceeds | Development and construction of the OCCP |
Three regulatory milestones preceded the launch:
- MASD Registration Committee approved registration of the Ovoot Bond program for an aggregate principal amount of up to US$60.0 million on 27 July 2026.
- Bank of Mongolia granted permission for the US$60.0 million issue and related subscription and coupon payments to be transacted in US dollars on 6 August 2026.
- Five tranches have been placed to date.
KK is also considering a further program of up to US$60.0 million, which would bring potential aggregate issuance to US$120.0 million if fully placed. Any further program would be subject to current placement performance, prevailing market conditions, project funding requirements, the extent to which bond financing is displaced by alternative sources, and all required corporate, MASD, Bank of Mongolia, and other applicable regulatory approvals.
What is a regulated OTC bond market and why does it matter for project financing?
Mongolia’s OTC market is a regulated private-placement market for debt securities that operates alongside the public exchange. It is principally designed for professional investors, with securities sold within a closed-circle framework. Despite the “OTC” label, it is not an unregulated bilateral dealer market. It operates through centralised securities-registration, electronic trading, and settlement infrastructure, with the Mongolian Association of Securities Dealers (MASD) administering issuer registration, trading and disclosure rules, and the M-OTC trading system. The Financial Regulatory Commission (FRC) licenses and supervises participants.
Denominating the Ovoot Bond in USD aligns with the nature of KK’s operations. Since export revenue from the sale of coking coal is expected to be generated in US dollars, structuring the debt obligation in USD ensures alignment between the currency of revenue and the currency of repayment, providing protection against exchange-rate risk.
From a yield perspective, the Ovoot Bond’s 11%–13% p.a. USD coupon sits within context of Mongolia’s year-on-year inflation of 11.2% (as at May 2026), the Bank of Mongolia policy rate of 11.0%, and the OTC market average bond rate for USD-denominated securities of 12.0%, as shown in Chart 1 of the Securities Prospectus.
The end-to-end OTC bond issuance process for the Ovoot Bond proceeded through six steps:
- Corporate approval / underwriter: Issuer and parent company approvals obtained; Tenger Capital Securities LLC appointed as underwriter.
- Structuring / documentation: Terms, Guarantee Agreements, and Securities Prospectus prepared; due diligence and placement documentation completed.
- MASD registration: MASD Registration Committee approved registration of up to US$60.0 million on 27 July 2026.
- USD permission: Bank of Mongolia permission dated 6 August 2026 permits the issue and related payments in US dollars.
- Central registration / placement: Securities recorded through central securities infrastructure; tranches placed with eligible investors and settled to securities accounts.
- Secondary trading / oversight: Eligible transfers may occur on M-OTC, subject to MASD rules, disclosure and surveillance, with FRC supervision.
What the bond proceeds fund and the project behind them
The OCCP is the asset underpinning the bond. It hosts a JORC (2012) compliant Coal Resource of 219.4 Mt and a Coal Reserve of 130.1 Mt, including a Marketable Coal Reserve of 97.9 Mt. Based on the updated reserve estimate, the project carries a post-tax NPV10 of approximately US$1.48 billion and a post-tax real IRR of approximately 60% (source: ASX announcement 11 September 2026, Ovoot Coal Reserve Update Supports Strong Project Economics).
Approximately US$70 million has already been invested in the project to date, reflected as paid-in capital on KK’s balance sheet as at 31 December 2025. A further US$149.2 million is estimated to be required to complete Phase 1 infrastructure.
Ovoot Project development has progressed across multiple fronts in 2026, with infrastructure planning, logistics frameworks, and in-country partnerships forming the operational foundation that the bond proceeds are now structured to accelerate.
The planned use of the US$60.0 million first bond program proceeds (sourced from Table 5 of the Securities Prospectus) is as follows:
- Processing Infrastructure (CHPP): US$22.3 million
- Logistics Infrastructure (ERT): US$15.4 million
- Transportation Infrastructure: US$4.6 million
- Mining Infrastructure: US$1.6 million
- Other: US$3.2 million
- Working Capital: US$13.1 million
- Total: US$60.0 million
The CHPP and ERT facilities are being delivered under an Engineering, Procurement and Construction (EPC) contract executed with CCTEG-IEC at a lump-sum contract value of US$69.9 million. Coal mining, processing, transportation and sales are planned to commence in Q4 2027, initially targeting 1.5 Mtpa raw coal (approximately 1.2 Mtpa product coal), scaling to 2.5 Mtpa and subsequently to 5.0 Mtpa of raw coal mining and processing capacity.
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Credit support, guarantees and the investment case
KK’s obligations under the current US$60.0 million Ovoot Bond program are supported by separate Guarantee Agreements provided by Mr Tserenpuntsag Tsedendamba and Gemnet LLC. Mr Tserenpuntsag is Aspire’s largest shareholder, holding approximately 52.47% of Aspire’s issued ordinary shares, and is the founder of Gemnet LLC.
Gemnet LLC’s 2025 audited financial statements report total assets of MNT 129.6 billion and EBITDA of MNT 8.6 billion. The Securities Prospectus notes that these are historical figures and do not constitute an assurance that Gemnet LLC will have sufficient liquidity or recoverable assets to satisfy the guarantee if it is called during the term of the securities.
The independent auditor’s opinion on KK’s 2025 financial statements, provided by Olziit Account Audit LLC, concluded:
Olziit Account Audit LLC
“In our opinion, these financial statements fairly present, in all material respects, the financial position of Khurgatai Khairkhan LLC as of December 31, 2025, and its financial performance and cash flows for the year then ended, in accordance with IFRS and the laws, rules, and regulations applicable in Mongolia.”
No separate guarantee fee is payable by Aspire or KK to either guarantor for providing the Guarantee Agreements.
Investors should note that the Guarantee Agreements constitute contractual credit support and do not remove or replace KK’s primary obligation to pay all amounts owing under the Ovoot Bond. The ability of a guarantor to satisfy any claim will depend upon its financial position, liquidity, and recoverable assets at the relevant time, and the Guarantee Agreements should not be regarded as an assurance that principal or interest will necessarily be paid in full or on time.
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