Steppe Gold Announces Corporate Update, Strong Fourth Quarter Production
Steppe Gold Announces Corporate Update,
Strong Fourth Quarter Production
Ulaanbaatar, Mongolia--(Newsfile Corp. - January 21, 2026) - Steppe Gold Ltd. (TSX: STGO) (OTCQX:
STPGF) (FSE: 2J9) ("
Steppe Gold
" or the "
Company
") is pleased to provide a corporate update.
Fourth Quarter Production
Company 2025 fourth quarter gold production was 29,280 oz, higher than updated guidance of 23,000
oz. Unaudited gold sales for the quarter was 37,357 oz. As a result, full year unaudited sales and
production for the Company and its subsidiaries (the "
Group
") was approximately 76,000 oz.
Bond Extension
Steppe Gold also announces its wholly-owned subsidiary Boroo Gold LLC ("
Boroo Gold
") has agreed
with Boroo Pte Ltd. ("
Boroo Singapore
") to extend the maturity date for the outstanding intercompany
bonds from December 31, 2025 to December 31, 2026 (the "
Bond Extension
").
The board of
directors of the Company (the "
Board
") has unanimously determined (with conflicting directors
abstaining) that the Bond Extension is in the best interest of the Company. The determination of the
Board was made upon the recommendation of the special committee of independent directors (the
"
Special Committee
") and after consideration of the advice of financial advisors to the Special
Committee and the Company.
The amendment applies to the following bond subscription agreements (collectively, the "
Bonds
"):
bond subscription agreement dated October 31, 2019, as amended on December 21, 2019;
bond subscription agreement dated March 3, 2021, as amended on September 1, 2021 and
December 21, 2023;
bond subscription agreement dated May 12, 2022, as amended on December 7, 2023; and
bond subscription agreement dated September 28, 2022, as amended on September 20, 2023
and December 21, 2023.
Except for the extension of the maturity date, all terms and conditions of the Bonds remain unchanged.
The amendment does not affect the outstanding principal amounts, the applicable interest rates, the
interest accrued to date or any other economic or commercial provisions of the Bonds.
As Boroo Singapore is a non-arm's length party to Steppe, the Bond Extension is considered a "related
party transaction" under Multilateral Instrument 61-101
- Protection of Minority Security Holders in
Special Transactions
("
MI 61-101
"). Steppe Gold is relying on exemptions from the formal valuation and
minority approval requirements of MI 61-101, in respect of the Bond Extension, pursuant to Section
5.5(a) and Section 5.7(1)(a) (Fair Market Value Not More Than 25% of Market Capitalization) of MI 61-
101.
Royalty Buyback Option Agreement
Steppe Gold has also entered into a royalty buyback option agreement (the "
Option Agreement
") with
Boroo Singapore regarding the Alturas gold project located in Chile (the "
Alturas Project
"). Pursuant to
the Option Agreement, Boroo Singapore has granted Steppe Gold a call option (the "
Option
") providing
Steppe Gold with the economic right to benefit from Boroo Singapore's contractual right to repurchase a
0.25% net smelter return royalty (the "
NSR
") applicable to the Alturas Project (the "
Transaction
").
Boroo Singapore will grant Steppe Gold an option over Boroo Singapore's existing contractual right to
repurchase the NSR from the current royalty holder. The Option may be exercised by Steppe Gold during
a 30-day period commencing on November 7, 2029. Upon exercise, Steppe Gold would pay US$7.5
million to Boroo Singapore to fund Boroo Singapore's cost to repurchase the NSR from the current
holder.
The Board has unanimously determined (with conflicting directors abstaining) that the Transaction is in
the best interest of the Company. The determination of the Board was made upon the recommendation
of the Special Committee and after consideration of the advice of financial advisors to the Special
Committee and the Company.
As Boroo Singapore is a non-arm's length party to Steppe Gold, the Transaction is considered a
"related party transaction" under Multilateral Instrument 61-101 - Protection of Minority Security Holders
in Special Transactions ("MI 61-101"). Steppe Gold is relying on exemptions from the formal valuation
and minority approval requirements of MI 61-101, in respect of the Transaction, pursuant to Section
5.5(a) and Section 5.7(1)(a) (Fair Market Value Not More Than 25% of Market Capitalization) of MI 61-
101.
About Steppe Gold
Steppe Gold is Mongolia's premier precious metals company.
Cautionary Statement on Forward-Looking Information
This news release contains certain statements or disclosures relating to the Company that are based on
the expectations of its management as well as assumptions made by and information currently available
to the Company which may constitute forward-looking statements or information ("forward-looking
statements") under applicable securities laws. All such statements and disclosures, other than those of
historical fact, which address activities, events, outcomes, results, or developments that the Company
anticipates or expects may, or will, occur in the future (in whole or in part) should be considered forward-
looking statements. In some cases, forward-looking statements can be identified by the use of the words
"commenced", "enables", "continued", "will", and similar expressions. In particular, but without limiting
the foregoing, this news release contains forward-looking statements pertaining to the following: the
ability of the Company to optimize capital toward core project development and value-enhancing growth
initiatives; the expected benefits of the maturity extension; timing of repayment of the Bonds; the financial
impact of the extension of the Bonds; and the Company's future strategy and development plans and the
potential benefits of the Transaction. Such statements reflect the Company's current expectations and
speak only as of the date of this news release. Except as required by applicable securities laws, the
Company undertakes no obligation to update forward-looking statements.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or
accuracy of the content of this news release.
Contact Information
Steppe Gold Ltd.
Jeremy South
Senior Vice President and Chief Financial Officer
Shangri-La office, Suite 1201, Olympic Street 19A, Sukhbaatar District 1, Ulaanbaatar 14241, Mongolia
Tel: +976 7732 1914
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/281216