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Steppe Gold Announces US$65m in Project Finance and Working Capital Debt Facility to Fast Track Phase 2 Construction
ULAANBAATAR, Mongolia, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Steppe Gold Ltd (TSX: STGO) (OTCQX:STPGF) (FSE:2J9) (“Steppe Gold” or the “Company”) is extremely pleas
About this update from Steppe Gold Ltd.
[{"type":"text","content":" ULAANBAATAR, Mongolia, Nov. 10, 2021 (GLOBE NEWSWIRE) -- Steppe Gold Ltd (TSX: STGO) (OTCQX:STPGF) (FSE:2J9) (“Steppe Gold” or the “Company”) is extremely pleased to announce that it has reached agreement for up to $65m (all figures in US$ unless otherwise stated) in debt capital (the “Loans”) to fast track its phase two construction of the ATO Gold Mine. Of the total $65m in Loans, MNT 170 billion or approximately US$59.7m (the “2021 Gold-2 Loan”), has been funded through the Gold-2 National Program, facilitated through the Central Bank of Mongolia. The 2021 Gold-2 Loan proceeds were advanced during the third quarter to Steppe Gold by the Trade and Development Bank of Mongolia (“TDBM”). The 2021 Gold-2 Loan is a special purpose covenant-light loan, with a three-year term at 9% interest and full prepayment rights without penalty. All interest amounts are paid monthly. Draw down of the loan proceeds will commence on completion of registration of security, expected later this month. Further the Company has reached agreement for an additional US$5m for allocation to working capital to be funded directly from TDBM in the form of a prepaid gold sales loan (the “TDBM Gold Loan”). The TDBM Gold Loan will be repaid over a period of 12 months based on gold sales, with repayments in cash equivalent at MongolBank gold prices. With its Phase 2 Expansion headline numbers announced on October 27 and construction already commenced on the expanded crushing circuit the Company will now allocate the proceeds of the Gold-2 Loan to fast track the construction of the Phase 2 Expansion Project. Bataa Tumur-Ochir, the President and CEO of Steppe Gold, commented “Following on the recent completion of the Feasibility Study for the Phase 2 expansion of the ATO Gold Mine, we are now very proud to announce this landmark US$65M financing package. With over 170 bn in funding from the Central Bank of Mongolia, Steppe Gold has cemented its position as Mongolia’s premier precious metals group. The Company is highly encouraged by the trust placed in us by leading Mongolian financial institutions. This is a tremendous vote of support for Steppe Gold, for the Mongolian mining industry and will add value to Mongolia’s export revenue and foreign reserves position. The Phase 2 Expansion will generate an additional 300 jobs and further solidify our role as the o...