Steppe Gold Ltd. (TSX: STGO | OTCQX: STPGF | FSE: 2J9) has announced the successful completion of the previously announced transaction between Steppe Gold and Boroo Gold LLC, whereby Steppe Gold has acquired all of the issued and outstanding common shares of Boroo Gold from an indirect, wholly owned subsidiary of Boroo Pte Ltd. Concurrently with the closing of the Boroo Gold Transaction, Steppe Gold also sold the Tres Cruces Oxide Project to Boroo Singapore for approximately C$12M in cash.
Steppe Gold chairman and CEO, Bataa Tumur-Ochir commented, “We are very pleased to complete the acquisition of Boroo Gold and become Mongolia’s leading primary gold producer. This transaction accelerates our path to becoming a multi-asset Mongolia-focused mining group and, importantly, immediately provides strong cash flow to support our growth plans.”
The transaction is expected to deliver several benefits:
- Increased production
- Immediate and strong cash flows to Steppe
- Additional flexibility in financing
- Cost savings and optimization
- Strong social licence
- Environmental leadership
- Exploration upside
- Stronger focus
“It further provides flexibility to lower the cost of the project financing of the ATO Phase 2 Expansion. We emerge from this transaction as a stronger company with current positive cash flow and financial strength to deliver on our ambitious growth plans in Mongolia. The combined group will have the scale and depth to both accelerate and optimize development and exploration and exploit economies of scale in operations and procurement.” Added Mr. Tumur-Ochir.
To find out more, please visit www.steppegold.com
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