Business
Steppe Gold Completes $12.1M Upsized Private Placement, with Participation by Eric Sprott and Steppe Gold's Management
Ulaanbaatar, Mongolia--(Newsfile Corp. - May 11, 2023) - Steppe Gold Ltd. (TSX: STGO) (OTCQX: STP...
About this update from Steppe Gold Ltd.
[{"type":"text","content":"Steppe Gold Completes $12.1M Upsized Private Placement, with Participation by Eric Sprott and Steppe Gold's ManagementUlaanbaatar, Mongolia--(Newsfile Corp. - May 11, 2023) - Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (the \"Company\"), is pleased to announce that it has successfully completed a non-brokered private placement (the \"Private Placement\"), raising a total of $12.1 million, which was upsized from the original estimate of $9 million. The private placement included participation from the Company's management and 2176423 Ontario, a company beneficially owned by Eric Sprott. Under the Private Placement, the Company issued an aggregate of 11,000,000 common shares of the Company (the \"Common Shares\") at a price of $1.10 per Common Share for aggregate gross proceeds of $12,100,000. Bataa Tumur-Ochir, President and Chief Executive Officer of Steppe Gold, stated: \"I am thrilled to participate in this offering, and we are delighted to welcome a significant new shareholder and grateful for the continued support of our existing major shareholders, including Eric Sprott.\"The funds raised through this placement will be instrumental in achieving our strategic goal of securing project financing for the Phase 2 Expansion at ATO. We are confident that this expansion will unlock significant value for our stakeholders and drive sustainable growth for our company.\"The Common Shares issued in connection with the Private Placement will be subject to a hold period of four months plus a day from the date of issuance pursuant to applicable securities laws.Eric Sprott through 2176423 Ontario Ltd. (\"217 Ontario\"), a Corporation beneficially owned and controlled by him acquired an aggregate of 909,091 Common Shares for a total of $1,000,000 pursuant to the Private Placement (the \"Sprott Participation\"). Mr. Sprott is an insider of the Company and, as a result, his participation in the Private Placement constitutes a \"related party transaction\" as defined in Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"MI 61-101\"). The Sprott Participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 in reliance upon the exemptions contained in Section 5.5(a) and 5.7(1)(a), respectively, of MI 61-101. A material change report was not filed more...