Steppe Gold enters into definitive deal to acquire Boroo Gold
15.04.2024 | NewsDirect
Steppe Gold Chief Financial Officer Jeremy South joined Steve Darling from Proactive to unveil a significant development in the company's growth trajectory. Steppe Gold has initiated a transformative share exchange agreement aimed at acquiring all of the issued and outstanding common shares of Boroo Gold, a strategic move poised to establish Steppe Gold as Mongolia's premier gold producer.In tandem with this acquisition, Steppe Gold has also finalized separate definitive share purchase agreements, paving the way for the sale of the Tres Cruces Oxide Project to Boroo Singapore for approximately 12 million Canadian dollars, to be disbursed over the course of the next 18 months.
South emphasized that this strategic maneuver not only accelerates Steppe Gold's journey towards becoming a multi-asset mining group focused on Mongolia but also fortifies its financial position with robust cash flow, buoyed by the recent upsurge in gold prices.
With this transaction nearing completion, Steppe Gold anticipates closing out 2024 with a run rate of approximately 90,000 ounces in gold production, with projections soaring to over 150,000 ounces by 2026 on a pro forma basis.
Furthermore, South disclosed to Proactive that Boroo Gold anticipates a significant uptick in gold production from 2024 to 2031, with projected average annual production hovering around 60,000 ounces in 2024, 2025, and 2026. This augurs well for Steppe Gold's strategic objectives, positioning the company for sustained growth and value creation in the years to come.
As Steppe Gold charts its course towards becoming a dominant force in Mongolia's mining landscape, the company remains steadfast in its commitment to delivering value to its shareholders while driving sustainable growth through strategic acquisitions and operational excellence. Stay tuned for further updates as Steppe Gold continues to execute its ambitious expansion plans and solidify its position as a leading player in the gold mining industry.
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