Steppe Gold Ltd. (TSX: STGO | OTCQX: STPGF | FSE: 2J9) has signed a binding term sheet to provide up to US$150M in financing to fully fund the construction and completion of the Phase 2 expansion at the ATO Gold Mine.
This significant milestone is the culmination of two years of collaborative efforts with the company’s key stakeholders in Mongolia as it successfully moves forward with the Phase 2 expansion.
The company has been dedicated to establishing a strong social licence for its sustainable mining project, aiming to create lasting value for the people of Dornod and Mongolia. The secured financing will spur employment and investment during the upcoming construction phase and sustain these benefits for the next decade.
Steppe Gold chairman and CEO, Mr. Bataa Tumur-Ochir commented, “This is a significant milestone for Steppe Gold and secures the future of the ATO Gold mine for the next 14 years. It has been a challenging yet rewarding 5 years since we listed on the TSX, and the company has been working towards unlocking the full potential of the ATO Gold Mine through the Phase 2 expansion,”
“Most importantly, it allows the company to move forward with all our stakeholders in Mongolia with a long-term and sustainable project in the region, with secure employment opportunities and positive economic outcomes.”
The company has received a US$50M term loan from the trade and development bank (TDB) of Mongolia. The bank loan will have a term of four years at an interest rate of 13.4% with flexible prepayment conditions.
A senior secured credit facility for US$50M comprised of a senior secured non-revolving amortizing loan has also been acquired by Steppe.
An additional US$50M gold linked loan has been negotiated with fixed repayable terms.
The company has reported that parties involved will move to definitive loan documentation, with funding in tranches over the next nine to 12 months. The TDB bank loan will likely be funded starting in July 2023.
To find out more, please visit www.steppegold.com
