Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) announced that it has entered into an arrangement agreement to acquire all of the issued and outstanding common shares of Anacortes Mining Corp.
The Mongolia-focused precious metals company said Anacortes shareholders will receive 0.4532 of a Steppe Gold common share for each Anacortes share held, which represents consideration of about C$0.48 per Anacortes common share.
“We are very pleased to add one of the highest-grade undeveloped oxide gold deposits in the world to our development pipeline,” Steppe Gold CEO Bataa Tumur-Ochir said in a statement.
“Our vision is to build a 200,000 ounce gold equivalent production profile, with our ATO Phase 2 expansion project expected to come online in 2025 and the Tres Cruces Mine moving to production soon thereafter,” Tumur-Ochir added.
Steppe noted that Anacortes Mining’s Tres Cruces project in Peru has the potential to add 68,000 ounces of gold production per year at average all-in sustaining cash costs of US$734 per ounce.
The combined company will also have a resource base of over 4.5 million gold equivalent ounces, according to Steppe Gold executive chairman Matthew Wood.
The company added that Steppe Gold and Anacortes shareholders will own approximately 79% and 21% of the combined company, respectively, on a basic basis.
Steppe Gold is Mongolia’s premier precious metals company.
Contact Sean at sean@proactiveinvestors.com