Steppe Gold announces the successful completion of the previously announced transaction between Steppe Gold and Boroo Gold LLC, whereby Steppe Gold has acquired all of the issued and outstanding common shares of Boroo Gold from an indirect, wholly owned subsidiary of Boroo Pte Ltd. Concurrently with the closing of the Boroo Gold Transaction, Steppe Gold also sold the Tres Cruces Oxide Project to Boroo Singapore for approximately CAD$12 million in cash and together with the Boroo Gold Transaction.
Boroo Gold brings substantial additional production, with an estimated 431,000 ounces of gold production between 2024 to 2031. In 2023, Boroo Gold reported production of 67,315 oz of gold, an AISC of $847 per oz at an average gold price of $1,957.
Combined ATO and Boroo Gold mine production in 2024 and 2025 is expected to be between 80,000 to 90,000 ounces. Year to date (June 30) production at Boroo Gold is 44,506 ounces.
In order to secure terms for debt and leases, Boroo Gold hedged the majority of its 2024 gold production at $2,000. This hedge is expected to expire in Q1 2025. Boroo Gold is being acquired on a zero net debt basis. Steppe Gold plans to provide further details on the post transaction debt structure shortly.
Steppe Gold Chairman and CEO, Bataa Tumur-Ochir commented, “We are very pleased to complete the acquisition of Boroo Gold and become Mongolia’s leading primary gold producer. This Transaction accelerates our path to becoming a multi-asset Mongolia-focused mining group and, importantly, immediately provides strong cash flow to support our growth plans.
It further provides flexibility to lower the cost of the project financing of the ATO Phase 2 Expansion. We emerge from this Transaction as a stronger company with current positive cash flow and financial strength to deliver on our ambitious growth plans in Mongolia. The combined group will have the scale and depth to both accelerate and optimize development and exploration and exploit economies of scale in operations and procurement.”
