Steppe GOLD Announces Completion of $15 Million Strategic Investment BY Eric Sprott
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TSX - STGO
STEPPE GOLD ANNOUNCES COMPLETION OF $15 MILLION
STRATEGIC INVESTMENT BY ERIC SPROTT
Ulaanbaatar, Mongolia 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 Com pany 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 co mmon 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 in vestment will be used by the Compan y 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 "W e are very happy to receive further foreign
investment into Mongolia and into Steppe Gold as one of the world’s newest gol d 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 in to Steppe Gold is very exciting. I am encouraged by
how the team has demonstrated st rong execution capabilities by brin ging 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 an d 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 Ontari o 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 al so 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).
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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. Fact ors 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, statement s 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 doe s not accept responsibility for the adequacy or
accuracy of the content of this news release.