US$10.5M To Support Phase 2 ATO Gold Expansion
Steppe Gold Ltd. (TSX: STGO) has secured an initial tranche of project financing for its Expansion Project at the ATO Gold Mine in Mongolia with the intention of increasing gold production to 150,000 oz equivalent per annum.
The Gold-2 Programme financing, facilitated through the Central Bank of Mongolia, was provided by the Trade and Development Bank of Mongolia (TDB) in the initial amount of approximately US$10.5 million.
Steppe Gold President and CEO, Bataa Tumur-Ochir, said that after taking account of this new loan, the company currently has cash available of approximately US$34.5m.
“We are delighted to secure this initial tranche of project finance debt through the Gold-2 Programme,” Mr Tumur-Ochir said,
“With the expansion of the ATO Gold Mine now well underway, we are keen to ensure our financing arrangements allow us to move quickly to construction and then to production.
“We would particularly like to thank the Government of Mongolia and the government agencies for facilitating this program in support of safe, responsible gold production in Mongolia”
The proceeds from the financing will be used for development of the ATO Gold Mine expansion with longer lead time items being ordered in the coming months.
The “Gold-2 Program” was approved by the Government of Mongolia in 2017. The purpose of the “Gold-2 Program” is to ensure the sustainable development of the gold sector in the short-term to long-term, increase exploration efforts, maintain legal stability and promote environmentally responsible mining.
A number of government agencies including the Ministry of Mining and Heavy Industry, Ministry of Finance, Ministry of Environment and Tourism and Central Bank of Mongolia, commercial banks and the private sector are cooperating as part of the programme.
