steppe - company update finalv1...steppe gold is a precious metals exploration and development...
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TSXSymbol: STGO
TotalBasicSharesO/S(M): 42.9
MATTHEWWOODChairman,PresidentandCEO
BATAATUMUR-OCHIRDirectorandVicePresidentMongolia
ANEELWARAICHDirectorandExecutiveVicePresident
PATRICKMICHAELSDirector
DR.ZAMBABATJARGALDirector
LEWISMARKSDirector
SHELDONVANDERKOOYDirector
CONTACTINFORMATION
THECOMPANY’SHEADOFFICE:
Shangri-Laoffice,Suite1201,Olympicstreet19A,SukhbaatarDistrict1,Ulaanbaatar14241,MongoliaTel:+97677321914
TORONTOOFFICE:
90AdelaideStreet.W,Suite400Toronto,ONM5H3V9,CanadaTel:+16476970577
TRANSFERAGENT:
LoriWinchesterSeniorRelationshipManager,ClientManagement
Phone:+1416607-7898Cell:+1416671-4558Email:[email protected]
Toronto,ON – SteppeGold Limited (TSX: STGO) – STEPPEDRAWSONSECOND UPFRONT DEPOSIT UNDER TRIPLE FLAG BERMUDA GOLDSTREAMANDREPAYSCENTERRANOTEFORATOPROJECTACQUISITION
TORONTO--SteppeGoldLimited(TSX:STGO)(the“Company”or“SteppeGold”)is pleased to announce that it hasmet the conditions to advance theUS$11.5millionSecondUpfrontDeposit availableunder its gold streamwithTriple FlagMining Finance Bermuda Ltd. (“Triple Flag Bermuda”) and Triple Flag hasacceptedanadvancerequestforUS$8.1milliontocoverforecastedexpendituresfordevelopmentoftheATOProjecttotheendoftheyear.Theadvancewillbemadeonamonthlybasis,withtheCompanyhavingalreadyreceivedanadvanceofUS$3.8milliontocoverOctoberexpendituresattheATOproject.ThebalanceoftheUS$8.1millionadvancewillbepaid intwotranchesofUS$2.6milliononOctober26,2018andUS$1.7milliononNovember26,2018.
TheCompanyand itssubsidiariesSteppeGoldLLCandSteppe InvestmentsLtd.(“SteppeBVI”)enteredintoametalspurchaseandsaleagreementdatedAugust11,2017(the“StreamAgreement”)withTripleFlagBermudapursuanttowhichSteppeBVIagreedtoselltoTripleFlagBermudaaportionofthegoldandsilverproduced from the ATO Project. Under the terms of the Stream Agreement,SteppeBVIisobligatedtoselltoTripleFlagBermuda25%ofthegoldand50%ofthesilverproducedfromtheATOProjectuntilsuchtimeasSteppeBVIhassoldanaggregateof46,000ouncesofgoldand375,000ouncesofsilver,respectively(the“DeliveryMilestones”).
AsconsiderationforthegrantofthestreambySteppeBVI,TripleFlagBermudaagreed tomakeanupfrontdepositagainst thepurchaseprice for thegoldandsilverofUS$23millionintwo$11.5milliontranches.ThefirsttrancheofUS$11.5million(the“InitialUpfrontDeposit”)wasadvancedonSeptember15,2017.Theadvance of the second tranche of US$11.5 million (the “Second UpfrontDeposit”) was subject to certain conditions including Steppe Mongolia havingexpended at least US$15 million on the ATO Project. The Second UpfrontDeposit can be drawn down in tranches representing 3-month forecastedexpenditures for development of the ATO Project. On completion of thedevelopmentoftheATOProject,anyamountoftheSecondUpfrontDepositthathasnotbeendrawndownwillbeadvancedasalumpsum.
The Company is also pleased to advise that it has repaid the US$5 millionpromissorynoteissuedtoCenterraGoldMongoliaLLC,asubsidiaryofCenterraGoldInc.,aspartofthepurchasepricefortheacquisitionbytheCompanyoftheATOProject. The remainingpromissory noteofUS$5millionheldbyCenterraandrepresentingthebalanceofthepurchasepricefortheATOProjectisdueonSeptember30,2019.
CAPITALIZATION
BOARDOFDIRECTORS
TSX:STGO
October15,2018
TSX:STGO
October14,2018
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ABOUTTRIPLEFLAG
TripleFlagMiningFinanceBermudaLtd.andTripleFlagMiningFinanceLtd.togetherconstituteTripleFlag.TripleFlagprimarilytargetsstreamingandroyalty investmentsintheminingsectorwithbackingbyElliottManagementCorporation,anexperiencedglobalinvestmentfirmwithmorethan$30billionofassetsundermanagement. Triple Flag's investment focus is primarily on preciousmetals with amission to become aleadingsought-after long-termfundingpartnertominingcompaniesthroughoutthecommoditycycle.Formoreinformation,visithttp://www.tripleflagmining.com.
ABOUTSTEPPEGOLDSteppeGoldisapreciousmetalsexplorationanddevelopmentcompanywithanaggressivegrowthstrategyto build Steppe into the premier preciousmetals company inMongolia. The Company owns 100% of theadvanced staged Altan Tsaagan Ovoo Gold Project where resource expansion drilling and a heap leachdevelopmentiscurrentlyunderway.TheCompanyalsoowns80%oftheexcitingUudamKhundiiGoldProjectwhereanactiveexplorationprogramisunderwayandmakingnewdiscoveries.Mongoliaisopenforbusiness,prominingdevelopmentandoneofthe lastgreatfrontierswheregiantmineraldepositscanbefoundanddeveloped.