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Steppe Gold Signs Binding Term Sheet for US$150 Million to Fully Fund the Phase 2 Expansion at the ATO Gold Mine
Ulaanbaatar, Mongolia--(Newsfile Corp. - July 11, 2023) - Steppe Gold Ltd. (TSX: STGO) (OTCQX:...
About this update from Steppe Gold Ltd.
[{"type":"text","content":"Steppe Gold Signs Binding Term Sheet for US$150 Million to Fully Fund the Phase 2 Expansion at the ATO Gold MineUlaanbaatar, Mongolia--(Newsfile Corp. - July 11, 2023) - Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) (FSE: 2J9) (\"Steppe Gold\" or the \"Company\") is very pleased to announce it has signed a binding term sheet (the \"Term Sheet\") to provide up to US$150 million in financing to fully fund the construction and completion of the Phase 2 Expansion at the ATO Gold Mine (the \"Phase 2 Expansion\").ATO Phase 2 Expansion Highlights:US$150 million fully funded to finance the Phase 2 Expansion of the ATO Gold Mine.Initial funding of US$50 million loan approved to order equipment and long lead items.The financing payback period starts upon completion of Phase 2 Expansion.First concentrate production and sales from Phase 2 is anticipated in 2025.Construction has commenced with the crushing circuit at 90% completion.The EPC selection process is well advanced, with final negotiations on timelines.Fresh rock mine expansion life is 12 years, extending open pit mining and milling operations to December 2036.The open pit model demonstrates the fresh rock phase generating 1,237,000oz Au Eq recovered over 12 years, at an average Au Eq oz of 103,000oz per annum.Total gross revenue over the next 14 years is anticipated to be US$2.2 billion, including the current oxide phase.Approximately 300 new jobs will be created during the construction and operation phases.Project is fully supported by local communities and all stakeholders.The Government of Mongolia fully supports mining and industrial export revenues into the country.This significant milestone is the culmination of two years of collaborative efforts with our key stakeholders in Mongolia as we successfully move forward with the Phase 2 expansion. Since our listing in 2018, the Company has been dedicated to establishing a strong social license for our sustainable mining project, aiming to create lasting value for the people of Dornod and Mongolia. The secured financing will spur employment and investment during the upcoming construction phase and sustain these benefits until at least 2036. Recognizing the untapped economic potential within the expansive +5,500-hectare license area, the Company remains committed to an active exploration program to fully leverage its value.The terms o...