Steppe Gold Ltd (TSX:STGO, OTCQX:STPGF) has finalized the acquisition of Boroo Gold LLC from Boroo Pte Ltd., significantly enhancing its production capabilities and financial flexibility.
The acquisition adds an estimated 431,000 ounces of gold production between 2024 and 2031, and Boroo Gold’s 2023 production of 67,315 ounces of gold with an all-in sustaining cost (AISC) of $847 per ounce will bolster Steppe Gold's immediate cash flow.
The increased cash flows are expected to aid in restructuring a $150 million project financing for the ATO Phase 2 Expansion.
Concurrently, Steppe Gold sold its Tres Cruces Oxide Project to Boroo Singapore for C$12 million.
The deal accelerates Steppe’s path to becoming a multi-asset Mongolia-focused mining group, Steppe CEO Bataa Tumur-Ochir said in a statement.
“We emerge from this transaction as a stronger company with current positive cash flow and financial strength to deliver on our ambitious growth plans in Mongolia. The combined group will have the scale and depth to both accelerate and optimize development and exploration and exploit economies of scale in operations and procurement."
As part of the transaction, Tserenbadam Dugeree has been appointed to Steppe Gold’s board. Additionally, Boroo Singapore has the right to nominate another board member, expected in the coming weeks. Patrick Michaels has stepped down from the board after seven years of service.