- Steppe Gold (STGO) and Anacortes Mining Corp. (XYZ) have signed a binding letter of intent regarding Steppe Gold’s acquisition of Anacortes in an all-share transaction
- Under the terms of the agreement, Anacortes shareholders will receive 0.4532 of a Steppe Gold common share for each Anacortes common share held
- Steppe Gold is Mongolia’s premier precious metals company
- Steppe Gold Ltd. opened trading at $1.05 per share
Steppe Gold (STGO) and Anacortes Mining Corp. (XYZ) have signed a binding LOI regarding Steppe Gold’s acquisition of Anacortes in an all-share transaction.
Anacortes shareholders will receive 0.4532 of a Steppe Gold share for each Anacortes common share held, representing consideration of approximately C$0.48 per share of Anacortes and a 36 per cent premium on the closing price of Anacortes and Steppe.
Shareholders of Steppe Gold and Anacortes will own 79 per cent and 21 per cent of the combined company, respectively.
The proposed transaction is anticipated to create a leading junior gold producer with significant near-term growth.
In addition to current production from Steppe Gold’s ATO gold mine, which is expected to increase in scale with the current Phase 2 expansion, additional future growth would be supported by the development of the high-grade Tres Cruces oxide project in Peru, which is located approximately 10 km from the Lagunas Norte mine.
The Anacortes board of directors has approved the binding agreement and unanimously recommends that Anacortes shareholders vote in favour of the transaction.
“This transaction transforms Steppe Gold into a multi-asset, multi-jurisdiction gold company with existing production and development projects in two of the most exciting and still untapped gold provinces in the world in both Mongolia and Peru,” noted Matthew Wood, Executive Chairman of Steppe Gold.
“The new combined company will have a potential development profile of over 200,000 ounces and a resource base of over 4.5 million gold equivalent ounces,” he added.
“We see this as an excellent opportunity for our shareholders to participate in a growing junior gold producer that will have an enhanced ability to advance and develop the Tres Cruces project,” said James A. Currie, President and Chief Executive Officer of Anacortes.
Execution of the arrangement agreement is expected to occur on or about April 14, 2023, and closing of the transaction is expected to occur on or about June 5, 2023.
Steppe Gold is Mongolia’s premier precious metals company.
Anacortes is a growth-oriented gold company in the Americas, which owns a 100-per-cent interest in the Tres Cruces gold project located in Peru.
Steppe Gold Ltd. (STGO) opened trading at $1.05 per share.
