United States. Any Failure to Comply with This Restriction May Constitute a Violation of U.s. Securities Laws Steppe GOLD Announces $15 Million Strategic Investment BY Eric Sprott to Accelerate Growth
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TSX - STGO
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A
VIOLATION OF U.S. SECURITIES LAWS
STEPPE GOLD ANNOUNCES $15 MILLION
STRATEGIC INVESTMENT BY ERIC SPROTT TO ACCELERATE GROWTH
Ulaanbaatar, Mongolia July 9, 2020 - Steppe Gold Ltd. (TSX: STGO) (“Steppe Gold” or the “Company”)
is pleased to announce a non-brokered private placem ent of approximately C $15.0 million (the “Private
Placement”), through the sale of 6,976,944 subscription receipts (the “Subscription Receipts”) at a price of
$2.15 per Subscription Receipt, subject to the approval of the Toronto Stock Ex change and, if required,
shareholder approval.
Each Subscription Receipt will conver t into units (the “Units”), consisting of one common share and one
common share purchase warrant, exercisable into o ne common share at an exercise price of $3.00 per
common share for a period of 24 months from the closing date.
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially controlled by him, is subscribing
for the entirety of the Private Placement.
Matthew Wood, Executive Chairman of Steppe Gold stated “On behalf of the Board and the Management
of Steppe Gold, I am delighted to welcome Mr. Sprott’s initial investment. His support serves as a strong
endorsement for Steppe Gold’s exciting gold assets.”
The net proceeds of the Private Placement will be used by the Company to advance their exploration and
development projects as well as for working capital and general corporate purposes.
Proceeds from the Private Placement will be placed in escrow on the closing date, to be released to Steppe
Gold on the receipt of all necessary shareholder and regulatory approvals (the “Approvals”). On conversion,
each subscription receipt will automatically convert into a Unit, for no additional consideration. In the event
that the Approvals are not obtained by October 31, 2020, each Subscription Receipt will be cancelled, and
the subscription funds will be re turned. Mr. Sprott currently does not own any common shares of Steppe
Gold.
All securities to be issued pursuan t to the Private Placement will be s ubject to a four month hold period
from the closing date under applicable securities laws in Canada.
This news release does not constitute an offer to sell or a solicitation of an offer to purchase any securities
in the United States. The securities being offered in the Private Pl acement have not been and will not be
registered under the U.S. Securities Act, or any state securities laws and may not be offered or sold within
the United States or to U.S. persons unless regist ered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.
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
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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.