Business
Steppe Gold Ltd: Development and Financing Update
TORONTO, April 29, 2019 (GLOBE NEWSWIRE) -- Steppe Gold Limited (TSX: STGO) (the “Company” or “Steppe Gold”) is pleased to provide an update on its progress in
About this update from Steppe Gold Ltd.
[{"type":"text","content":" TORONTO, April 29, 2019 (GLOBE NEWSWIRE) -- Steppe Gold Limited (TSX: STGO) (the “Company” or “Steppe Gold”) is pleased to provide an update on its progress in Mongolia. The Company has been mining since November 2018 and has completed Phase I mining with 230,000 tonnes mined. It is now moving rapidly to completion of the ADR plant, ahead of first gold in H2 2019. The majority of the capital expenditure has been incurred and the project remains under budget. At April 1, 2019, the Company had approximately US$2.7m (C$3.641) cash on hand. To ensure the Company is properly capitalized through to production, the Company believes it to be prudent to strengthen the balance sheet. Accordingly, the Company announces today that it is conducting a non-brokered private placement of a minimum of US$5.0m (C$6.75m) aggregate principal amount of unsecured convertible debentures. This financing also allows Steppe Gold to proceed with a summer exploration program on the ATO-4-Mungu trend as well as the trenching and drilling program on the four discoveries made on our highly prospective Uudam Khundii Project in Bayankhongor Province, in the south west of the country. The convertible debentures will bear interest from the date of closing at 10% per annum, calculated and payable semi-annually in arrears and will mature on the date that is three years from the date of issue. The convertible debentures will be convertible at the option of the holder into common shares of the Company (the “Common Shares”) at any time prior to maturity at a conversion price of C$0.90 per Common Share. The offering is subject to TSX approval and is expected to close on or about May 24, 2019. The Company can confirm that it has firm commitments for the private placement from European investors for approximately US$5.0m (C$6.75m). This financing keeps the Company fully funded into production. Development Update Mining and Crushing The Company has now completed Phase I mining with a total of 230,000 tonnes of ore and no waste being mined resulting in a zero strip ratio. The lack of waste has been a considerable bonus to the Company as we have significantly higher modelled gold grades on the Phase I mining program. Total mined gold grade for the Phase I mining program was 2.3 g/t gold equating to approximately 17,000oz of gold stacked on the pad for ...