Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) announced that it has achieved the next financing milestone for the Phase 2 Expansion of its ATO Gold Mine in Mongolia, drawing down US$40.4 million from its project financing package.
With the second drawdown of US$40.4 million, funded on March 20, the company said that a total of US$50 million has been drawn down from the first tranche of the US$150 million project financing package since October 2023.
The US$150 million project finance package has been available to Steppe Gold and its affiliates by TDB Capital and the Trade and Development Bank of Mongolia.
Steppe Gold said the Phase 2 Expansion is advancing according to projected timelines and budgets, with commissioning on track for the first quarter of 2026.
It said it has made its second milestone payment of US$37 million for the procurement of major long lead items, mobilization costs, early construction works and foundational works.
The major long lead items include flotation cells, grinding mills, cluster cyclones, thickener units, filters, and pumping systems.
"We are extremely pleased to report solid progress on our ATO Phase 2 Expansion, and we have now fully drawn down the first $50 million of the project financing package,” Steppe Gold CEO Bataa Tumur-Ochir said in a statement.
“With this major drawdown, together with our EPC partners at Hexagon, we can accelerate the ordering of long lead items, early construction and foundational works and start mobilization. Upon completion of the ATO Phase 2 Expansion and Boroo Gold acquisition, Steppe Gold is estimated to produce over 160,000 ounces by 2026."