Business
Steppe Gold Enters Into Share Exchange Agreement to Acquire Boroo Gold and Agrees to Sell Tres Cruces Oxide Project
ULAANBAATAR, Mongolia, April 11, 2024 (GLOBE NEWSWIRE) -- Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) (“Steppe Gold”) is pleased to announce that, fu
About this update from Steppe Gold Ltd.
[{"type":"text","content":" ULAANBAATAR, Mongolia, April 11, 2024 (GLOBE NEWSWIRE) -- Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) (“Steppe Gold”) is pleased to announce that, further to its press releases dated January 22, 2024 and March 19, 2024, it has entered into a share exchange agreement (the “Share Exchange Agreement”) pursuant to which Steppe Gold will acquire all of the issued and outstanding common shares (the “BG Common Shares”) of Boroo Gold LLC (“Boroo Gold”) from an indirect, wholly owned subsidiary of Boroo Pte Ltd. (“Boroo Singapore”) in an all-share transaction (the “Boroo Gold Transaction”). Additionally, pursuant to separate definitive share purchase agreements (the “Share Purchase Agreements”), each between one of Steppe Gold’s wholly-owned subsidiaries, on the one hand, and Boroo Singapore or one of its affiliates, on the other hand, each dated April 11, 2024, Steppe Gold will sell the Tres Cruces Oxide Project (the “Tres Cruces Project”) to Boroo Singapore for approximately CAD$12 million in cash (the “Tres Cruces Transaction”) payable over the next 18 months beginning as of the Closing Date (as defined in the Share Purchase Agreements). Highlights The Boroo Gold Transaction will create Mongolia’s leading gold producer Acquisition of a leading gold producer, Boroo Gold, will create Mongolia’s leading gold producer Boroo Singapore will hold approximately 55.9% of the issued and outstanding common shares of Steppe Gold (“Steppe Common Shares”) on a fully diluted basis, immediately following the completion of the Boroo Gold Transaction Immediate and strong cash flows to Steppe Gold Boroo Gold estimates over 400,000 oz of gold production from 2024 to 2031, with projected average annual production of approximately 60,000 oz in 2024, 2025 and 2026 In 2023, Boroo Gold had revenue of US$132 million on production of 67,315 oz of gold, with an AISC of $847 per oz, at an average achieved gold price of $1,957 per oz Boroo Gold is forecasting similar production levels in 2024, albeit with higher sustaining costs Long standing and strong social license The Boroo gold mine comes with a long and proud history of positive impact in Mongolia: Over US$1,020 million in benefits to Mongolia since 2003 (taxes and fees, CAPEX, donations, payments to local companies for goods and services and salaries to national employees) Over US$17.5 million i...