- Mining company, Steppe Gold (STGO) has secured the first tranche of financing for its ATO Gold Mine expansion project
- The initial amount of MNT 30 billion (approximately C$14 million) came from the Trade and Development Bank of Mongolia
- This loan has increased Steppe Gold’s available cash amount to roughly US$34.5 million (approximately C$46.1 million)
- The company intends to increase gold production at the ATO mine to 150,000 ounces equivalent per year
- Steppe Gold (STGO) is up 3.16 per cent and is currently trading at $2.61 per share
Mining company, Steppe Gold (STGO) has secured the first tranche of financing for its ATO Gold Mine expansion project.
The initial financing amount came to MNT (Mongolian tögrög/tugrik) 30 billion, or approximately C$14 million. This loan provided an injection of funds that increased Steppe Gold’s available cash amount to roughly US$34.5 million, or approximately C$46.1 million.
The proceeds of this financing will go towards the development of the ATO Gold Mine expansion. The company intends to increase gold production at the mine to 150,000 ounces equivalent per year.
Steppe Gold will be ordering longer lead time items for this objective in the coming months.
The financing was provided by the Trade and Development Bank of Mongolia, and facilitated through the Central Bank of Mongolia.
It was the result of the Mongolian Government’s Gold-2 program, which seeks to support the sustainable development of the nation’s gold sector. The program intends to achieve this goal by helping to fund expansion of gold exploration and production projects in Mongolia.
Steppe Gold’s President and CEO, Bataa Tumur-Ochir, commented on the positive impact of this initial funding.
“We are delighted to secure this initial tranche of project finance debt through the Gold-2 Program.
“With the expansion of the ATO Gold mine now well underway, we are keen to ensure our financing arrangements allow us to move quickly to construction and then to production.
“We would particularly like to thank the Government of Mongolia and the government agencies for facilitating this program in support of safe, responsible gold production in Mongolia,” he said.
Steppe Gold (STGO) is up 3.16 per cent and is trading at C$2.61 per share at 2:51pm EDT.