Business
Steppe Gold Director and VP Mongolia Announces Purchase of Convertible Debentures of Steppe Gold Ltd. and Filing of Early Warning Reports
Ulaanbaatar, Mongolia--(Newsfile Corp. - October 31, 2019) - Mongolia Inc Limited LLC. (" Mong...
About this update from Steppe Gold Ltd.
[{"type":"text","content":"Steppe Gold Director and VP Mongolia Announces Purchase of Convertible Debentures of Steppe Gold Ltd. and Filing of Early Warning ReportsUlaanbaatar, Mongolia--(Newsfile Corp. - October 31, 2019) - Mongolia Inc Limited LLC. (\"Mongolia Inc.\"), a private corporation incorporated in Mongolia and controlled by Bataa Tumur-Ochir, a director and officer of Steppe Gold Ltd. (\"Steppe\"), announces that on October 28, 2019 it purchased US$2.5 million principal amount of 10% two-year unsecured debentures (the \"Debentures\") from Chinggis Khaan Bank (\"Chinggis Bank\"). The US$2.5m principal amount of Debentures is convertible into 4,807,692 common shares of Steppe, at a price of US$0.52 per common share. Prior to the purchase of the Debentures, Mr. Bataa Tumur-Ochir had ownership, control or direction of 1,122,000 common shares and 800,000 options convertible into common shares of Steppe, representing 4.5% of Steppe's issued and outstanding common shares on a partially diluted basis. Following completion of the purchase, Mr. Tumur-Ochir will have ownership, control or direction of a total of 1,122,000 common shares and 5,607,629 securities convertible into common shares, representing 14.26% of Steppe's issued and outstanding common shares on a partially diluted basis.Chinggis Bank further announces that on October 28, 2019 it completed a private sale of US$2.5 million principal amount of Debentures to a third party. Prior to the sale of the Debentures to Mongolia Inc. and a third party, Chinggis Bank had ownership, control or direction of 9,615,384 common shares (assuming full exercise of the Debentures), representing 18.78% of Steppe's 41,576,189 issued and outstanding common shares on a partially diluted basis. Following the completion of the sale, Chinggis Bank will have disposed of the entirety of its holdings in Steppe. Chinggis Bank has no current intention to increase its beneficial ownership of, or control or direction over, securities of Steppe. Potential purchases of securities of Steppe will be reviewed on a continuing basis by Chinggis Bank, and holdings may be increased in the future.The Debentures purchased by Mongolia Inc. are held to further Mr. Bataa Tumur-Ochir's commitment to Steppe and may be exercised at his discretion. Mr. Bataa Tumur-Ochir has no current intention to increase his beneficial ownership of, or cont...