Acquisition Set to Create Mongolia’s Leading Gold Producer

SEATTLE (Scrap Monster): Steppe Gold Limited announced that it has entered into a binding term sheet towards acquisition of all of the issued and outstanding common shares of Boroo Gold LLC in an all-share transaction. The acquisition will be made either directly or through a wholly-owned subsidiary.

The proposed transaction is subject to successful negotiation of definitive agreements. Furthermore, it will be conditional on the receipt of necessary approvals from regulatory bodies, stock exchanges, court and shareholders of both the companies.

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The acquisition of Boroo Gold, with an average gold production of over 60,000 oz per annum and an expected mine life beyond 2023, will lead to creation of the largest gold producer in Mongolia.

The completion of the transaction is predicted to triple Steppe Gold’s production from 30,000 to 90,000 ounces per annum. Also, it promises to deliver strong cash flow and provide funding for exploration and additional acquisition opportunities in Mongolia.

The ATO Gold Mine Phase 2 Expansion will further boost production to approximately 160,000 ounces per annum by 2026, said the company press release.

Bataa Tumur-Ochir, Chairman and CEO of Steppe Gold noted that the acquisition will provide its shareholders with improved optionality at its Tres Cruces gold project in Peru, while focusing on growing its production base in Mongolia.