Steppe Gold Ltd. (TSX: STGO | OTCQX: STPGF | FSE: 2J9) has reached the next financing milestone for the Phase 2 Expansion at the 100% owned ATO Gold Mine. This coincides with further progress on the turnkey engineering, procurement, and construction contract (EPC contract), and the second project finance draw down of US$40.4M.
Also, a total of US$50M has been drawn from the first tranche of the US$150M project finance package since October 2023.
Steppe Gold has now made its second milestone payment of US$37M towards Phase 2 Expansion for procurement of major long lead items, mobilization costs, early construction works and foundational work.
Mr. Bataa Tumur-Ochir, chairman and CEO, commented, “We are extremely pleased to report solid progress on our ATO Phase 2 Expansion, and we have now fully drawn down the first US$50M of the project financing package. With this major drawdown, together with our EPC partners at Hexagon, we can accelerate the ordering of long lead items, early construction and foundational works and start mobilization. Upon completion of the ATO Phase 2 Expansion and Boroo Gold acquisition, Steppe Gold is estimated to produce over 160,000oz by 2026.”
Further to the announcement early this year, the company confirms that the contract amount payable to Hexagon for the full performance of the work under the EPC contract is approximately US$148.4M.
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