Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) announced that it has successfully completed a non-brokered private placement financing, raising $12.1 million, which was upsized from the original estimate of $9 million, by issuing 11 million company common shares at a price of $1.10 per share.
The Mongolia-focused precious metals company said the offering included participation from its management and 2176423 Ontario, a company beneficially owned by billionaire resource investor Eric Sprott.
“The funds raised through this placement will be instrumental in achieving our strategic goal of securing project financing for the Phase 2 Expansion at ATO,” Steppe Gold CEO Bataa Tumur-Ochir said in a statement.
Steppe Gold noted that immediately following completion of the private placement, Bataa now beneficially holds a total of 8,469,065 company common shares, representing undiluted beneficial ownership of about 10.14% of Steppe Gold’s stock.
It added that Eric Sprott, through 2176423 Ontario Ltd, acquired a total of 909,091 company common shares as part of the offering.
All common shares issued in connection with the private placement will be subject to a hold period of four months plus a day from the date of issuance pursuant to applicable securities laws.
Steppe Gold is Mongolia’s premier precious metals company.
Contact Sean at sean@proactiveinvestors.com