Business
Steppe Gold Announces Landmark Investment by Mongolian National Investment Fund
Ulaanbaatar, Mongolia--(Newsfile Corp. - January 22, 2020) - Steppe Gold Ltd. (TSX: STGO) ("St...
About this update from Steppe Gold Ltd.
[{"type":"text","content":"Steppe Gold Announces Landmark Investment by Mongolian National Investment FundUlaanbaatar, Mongolia--(Newsfile Corp. - January 22, 2020) - Steppe Gold Ltd. (TSX: STGO) (\"Steppe Gold\" or the \"Company\") is extremely pleased and proud to be the first company to receive funding from the Mongolian National Investment Fund PIF SPV. The fund has subscribed for a 12% two-year secured convertible debenture of the Company in the principal amount of US$3 million (the \"Debenture\"). The Mongolian National Investment Fund PIF SPV aims to finance high return projects that increase economic growth and provide a positive contribution to the social and economic development of the country. The Mongolian National Investment Fund PIF SPV is managed by DBM Asset Management Company, a wholly-owned subsidiary of the Government-owned Development Bank of Mongolia. The Debenture will bear interest from the date of closing at 12% per annum, calculated and payable semi-annually in arrears, and will mature two years from the date of issuance. The Debenture will be convertible at the option of the holder into common shares of the Company at any time prior to the close of business on the maturity date at a conversion price of US$0.68 (Approx. C$0.90) per common share. The Debenture will be a secured obligation of the Company, secured through a pledge by the Company of the shares of its subsidiary, Steppe West LLC, which indirectly owns an 80% interest in the Company's Uudam Khundii project. The gross proceeds from the Debenture will be used for exploration and development of the Company's properties in Mongolia, and to accelerate the production process. Matthew Wood, Chairman, commented, \"This historic partnership with the Mongolian National Investment Fund is another important milestone for Steppe Gold. As we build the premier precious metals company in Mongolia, we are especially pleased to see the continued strong support from local institutions, who share our passion for developing the substantial mineral wealth of the country. In our recent capital raising activity, over 70% has come from Mongolian institutions.\" The offering is expected to close on or about January 27, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the applic...