Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) has drawn down US$9.6 million from a US$150 million financing package that’s in place to allow for the construction and development of Phase 2 expansion at its ATO gold mine in Mongolia.
Engineering, procurement and construction arrangements are being finalised, partnering with leading international engineering firms and construction teams in Mongolia.
Long lead items will be ordered this November.
Engineering drawings and permits have also been completed to allow for the connection to the state power grid for upwards of 10MW.
This work is likely to save around US$100 per ounce in operating costs, lowering estimated all-in sustaining costs from US$900 per ounce to US$800.
“With our landmark financing package secured and drawdowns now commenced, we are very excited to accelerate development of Phase 2 expansion and soon order the long lead items,” said Bataa Tumur-Ochir, Steppe Gold’s chief executive.
“With our Phase 2 expansion fully financed and under development, the company is increasing its annual production from approximately 30,000 ounces in 2023 and 2024 to over 100,000 ounces of gold equivalent by the end of 2025.”