Ulaanbaatar, Mongolia--(Newsfile Corp. - August 6, 2020) - Steppe Gold Ltd. (TSX: STGO) ("Steppe Gold" or the "Company") is pleased to announce that the previously announced C$15 million investment in the Company by Mr. Eric Sprott has been completed.
Mr. Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, acquired a total of 6,976,944 units of the Company at a price of C$2.15 per unit for gross proceeds to the Company of C$15,000,429. Each unit is comprised of one common share of the company and one common share purchase warrant, with each warrant entitling the holder to acquire one additional common share at a price C$3.00 per share for a period of 24 months from the closing date.
The net proceeds of the investment will be used by the Company to advance their exploration and development projects as well as for working capital and general corporate purposes.
Steppe Gold CEO, Mr Bataa Tumur-Ochir commented, "We are very happy to receive further foreign investment into Mongolia and into Steppe Gold as one of the world's newest gold producers. This investment from Eric Sprott is a great endorsement of our team and our assets and allows us to accelerate our exploration programs as well as production expansion initiatives."
Mr. Eric Sprott commented, "This first investment into Steppe Gold is very exciting. I am encouraged by how the team has demonstrated strong execution capabilities by bringing high-margin gold production online and can continue to expand their production while further exploring their two exciting gold and silver licenses."
All securities to be issued pursuant to the investment will be subject to a four month hold period from the closing date under applicable securities laws in Canada. The Company is paying finder's fees of C$600,000 in connection with the investment.
Prior to the above acquisition, Mr. Sprott did not beneficially own or control any securities of the Company. Following completion of the above acquisition, Mr. Sprott beneficially owns and controls 6,976,944 common shares and 6,976,944 warrants representing approximately 11.1% of the issued and outstanding common shares of the Company on a non-diluted basis and 19.9% of the issued and outstanding common shares on a partially-diluted basis assuming exercise of the warrants acquired hereunder and forming part of the units.
Mr. Sprott has acquired the units through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of Steppe Gold including on the open market or through private acquisitions or sell securities of Steppe Gold including on the open market or through private dispositions, in the future depending on market conditions, reformulation of plans and/or other relevant factors.
Steppe Gold Ltd.'s head office is located at Olympic street 19A, Sukhbaatar District 1, Ulaanbaatar 14241, Mongolia. A copy of the early warning report 2176423 Ontario Ltd will appear on the Company's SEDAR profile at www.sedar.com and may also be obtained by calling Mr. Sprott's office at (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
About Steppe Gold Limited
Steppe Gold is Mongolia's premier precious metals company.
For Further information, please contact:
Matthew Wood, Executive Chairman
Bataa Tumur-Ochir, CEO and President
Shangri-La office, Suite 1201, Olympic street
19A, Sukhbaatar District 1,
Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914
Cautionary Note Regarding Forward-Looking Statements:
The above contains forward-looking statements that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward-looking statements. Factors that could cause such differences include: changes in world commodity markets, equity markets, costs and supply of materials relevant to the mining industry, change in government and changes to regulations affecting the mining industry. Forward-looking statements in this release include, among other things, statements regarding the trading of the Common Shares and business, economic, and political conditions in Mongolia. Although we believe the expectations reflected in our forward-looking statements are reasonable, results may vary, and we cannot guarantee future results, levels of activity, performance or achievements. We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.