Steppe GOLD Secures Initial Tranche of Debt Funding FOR Phase 2 Expansion
STEPPE GOLD SECURES INITIAL TRANCHE OF DEBT FUNDING FOR PHASE 2 EXPANSION
ULAANBAATAR, MONGOLIA SEPTEMBER 29, 2020; Steppe Gold Ltd. (TSX: STGO) ("Steppe Gold" or the
"Company") is extremely pleased to announce that it has secured an initial tranche of project financing
for its E xpansion Project at the ATO Gold Mine with the intention of increasing gold production to
150,000 oz equivalent per annum.
The Gold-2 Program financing, facilitated through the Central Bank of Mongolia, was provided by the
Trade and Development Bank of Mongolia (“TDB”) in the initial amount of MNT 30 billio n,
approximately US$10.5m).
After taking account of this new loan, t he Company currently has cash available of approximately
US$34.5m.
Steppe Gold President and CEO, Bataa Tumur -Ochir, noted, “We are delighted to secure this initial
tranche of project finance debt through the Gold -2 Program. With the expansion of the ATO Gold
Mine now well underway, we are keen to ensure our financing arrangements allow us to move quickly
to construction and then to production. We would particularly like to thank the Government of
Mongolia and the government agencies for facilitating this program in support of safe, responsible
gold production in Mongolia”
Enkhtaivan Ganbold, Deputy Governor of the Central Bank of Mongolia, commented, “The Central
Bank of Mongolia is supporting leading responsible mining companies and projects through
commercial banks of Mongolia to accelerate gold production and export in Mongolia. Gold production
and export plays a vital role in the Mongolia economy, and we are pleased to support and finance the
second phase of Steppe Gold’s development programs through the G overnment’s Gold-2 Program.”
Mr. Orkhon Onon, CEO of TDB commented, “We are very pleased to support our leading gold
producers in the Gold -2 Program. Steppe Gold is a great success story in the Mongolian mining
industry, showing leadership in safety, community support and environmental stewardship . We are
glad to support Steppe Gold’s exciting expansion plans.”
The proceeds from the financing will be used for development of the ATO Gold Mine expansion with
longer lead time items being ordered in the coming months.
About the “Gold-2 Program”
The “Gold-2 Program” was approved by the Government of Mongolia in 201 7. The purpose of the
“Gold-2 Program” is to ensure the sustainable development of the gold sector in the short -term to
long-term, increase exploration efforts, maintain legal stability and promote environmentally
responsible mining. A number of government agencies including the Ministry of Mining and Heavy
Industry, Ministry of Finance, Ministry of Environment and Tourism and Central Bank of Mongolia ,
commercial banks and the private sector are cooperating as part of the program.
Steppe Gold Limited
Steppe Gold is Mongolia’s premier precious metals company.
For Further information, please contact:
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 t hose
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 re gulations 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