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Steppe Gold Completes Acquisition of Boroo Gold, Becomes the Leading Gold Producer in Mongolia
Ulaanbaatar, Mongolia--(Newsfile Corp. - August 1, 2024) - Steppe Gold Ltd. (TSX: STGO) (OTCQX: S...
About this update from Steppe Gold Ltd.
[{"type":"text","content":"\nSteppe Gold Completes Acquisition of Boroo Gold, Becomes the Leading Gold Producer in MongoliaUlaanbaatar, Mongolia--(Newsfile Corp. - August 1, 2024) - Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) (the \"Company\" or \"Steppe Gold\") is pleased to announce the successful completion of the previously announced transaction between Steppe Gold and Boroo Gold LLC (\"Boroo Gold\"), whereby Steppe Gold has acquired all of the issued and outstanding common shares of Boroo Gold (the \"Boroo Gold Transaction\") from an indirect, wholly owned subsidiary of Boroo Pte Ltd. (\"Boroo Singapore\"). Concurrently with the closing of the Boroo Gold Transaction, Steppe Gold also sold the Tres Cruces Oxide Project to Boroo Singapore for approximately CAD$12 million in cash (the \"Tres Cruces Transaction\" and together with the Boroo Gold Transaction, the \"Transaction\").The Transaction is expected to deliver several benefits to Steppe Gold:Increased Production: Boroo Gold brings substantial additional production, with an estimated 431,000 ounces of gold production between 2024 to 2031. Immediate and strong cash flows to Steppe Gold: In 2023, Boroo Gold reported production of 67,315 oz of gold, an AISC of $847 per oz at an average gold price of $1,957. Additional Flexibility in Financing: Expected positive cash flows will allow flexibility in restructuring the $150 million project financing for the ATO Phase 2 Expansion.Cost Savings and Optimization: Steppe Gold has identified cost reductions through bulk purchasing, better equipment purchasing options, and lower administrative expenses as well as a number of optimization opportunities at the existing mines.Strong social license: Over US$1 bnin benefits to Mongolia since 2003 and US$17.5 million in donations and investments in local soums.Environmental leadership: Boroo Gold is a leader in environmental stewardship of mining assets in Mongolia, with a proven track record of innovation.Exploration Upside: Identified exploration and resource expansion opportunities near its existing mines, offering promising opportunities for future discoveries.Stronger Focus: By divesting the Tres Cruces Project for cash, Steppe Gold can concentrate its resources on growing its portfolio of Mongolian assets.Forward Guidance and Near-Term Considerations Combined ATO and Boroo Gold mine production in 2024...