Tuesday, October 8, 2024

“Steppe Gold Expands Footprint in Mongolia, Eyes Tripled Annual Gold Production”

Mongolia-focused Steppe Gold (TSX: STGO) is poised to solidify its position as the leading gold producer in the country through the acquisition of Boroo Gold LLC, a move that is set to triple its annual production capacity.

In a press release issued on Monday, Steppe Gold announced the signing of a binding term sheet for the acquisition of Boroo in an all-share transaction. The share exchange ratio ensures that Boroo shareholders will hold a 58.8% interest in Steppe upon completion of the transaction.

Established in 1997, Boroo’s primary asset is its eponymous gold mine in Selenge province, along with the adjacent Ulaanbulag mine. Combined, these assets boast an average annual gold production exceeding 60,000 ounces and a projected mine life extending beyond 2030. This acquisition is expected to substantially enhance Steppe’s current annual production of 30,000 ounces from the ATO (Altan Tsagaan Ovoo) gold mine.

Looking ahead, Steppe envisions a longer-term production target of 200,000 ounces per annum, factoring in the ATO Phase 2. The company anticipates achieving an annual production of 160,000 ounces as early as 2026. Furthermore, the acquisition is projected to augment Steppe’s existing resource base by over 4 million ounces of gold equivalent.

Bataa Tumur-Ochir, CEO of Steppe, highlighted the anticipated growth in production, stating, “Our production is expected to triple over the next two years to 90,000 ounces and 160,000 ounces by 2026, increasing our financial strength to repay the non-dilutive $150 million project financing for the ATO gold mine Phase 2 expansion and to advance our exploration portfolio.”

The deal includes a right of first refusal for Boroo and/or its associates to acquire the Tres Cruces gold project in Peru at fair market value, valid for six months following the completion of the transaction.

Negotiations for a definitive agreement between Steppe and Boroo are scheduled over the coming weeks, with the exclusivity period set to conclude on March 18, 2024. Following the announcement, Steppe Gold’s shares experienced a 1.5% increase by 11:40 a.m. ET, reaching a market capitalization of C$70 million ($52 million).

Alice
Alice
Alice is a seasoned jewelry designer renowned for her exquisite creations that seamlessly blend artistry with elegance. With a passion for craftsmanship and an unwavering commitment to quality, Alice has established herself as a distinguished figure in the world of fine jewelry. Drawing inspiration from diverse cultures and artistic movements, Alice brings a unique perspective to her designs, creating pieces that transcend mere accessories to become timeless works of art. Her meticulous attention to detail and insistence on using only the finest materials ensure that each creation reflects not only her artistic vision but also a commitment to unparalleled craftsmanship. Having honed her skills through years of dedicated practice and a keen understanding of evolving trends, Alice is adept at translating her clients' desires into bespoke, one-of-a-kind pieces. Her portfolio encompasses a range of styles, from classic and timeless to avant-garde and contemporary, showcasing her versatility and ability to cater to a diverse clientele.

Related Articles

Latest Articles