MINING REFINING

Steppe Gold to become the largest primary gold producer in Mongolia after deal sign-off

Tue July 02 2024

Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) shareholders have approved the acquisition of Boroo Gold and the sale of the Tres Cruces Oxide Project to Boroo Singapore for C$12 million. The sign-off, which garnered 99% support, was given at the annual meeting. Following this transaction, Steppe Gold will become the largest primary gold producer in Mongolia.

The deal combines Steppe's ATO Gold Mine with Boroo Gold, targeting production of over 150,000 ounces of gold annually by 2026. It will provide immediate cash flows, as Boroo Gold reported a revenue of US$132 million in 2023 from 67,315 ounces of gold.

The enlarged entity is expected to achieve cost savings through bulk purchasing and reduced administrative expenses. Additionally, the deal expands Steppe's exploration opportunities near its existing mines. Divesting the Tres Cruces Project allows Steppe Gold to focus more closely on its Mongolian assets.

The transaction, expected to close around July 16, is subject to regulatory approvals from the Toronto Stock Exchange and Mongolian authorities.

Source: https://www.proactiveinvestors.com/