Steppe Gold Ltd announce that, it has entered into a pursuant to which Steppe Gold will acquire all of the issued and outstanding common shares of Boroo Gold LLC from an indirect, wholly owned subsidiary of Boroo Pte Ltd. in an all-share transaction.
Key takeaways are, the Boroo Gold Transaction will create Mongolia’s leading gold producer acquisition of a leading gold producer, Boroo Gold, will create Mongolia’s leading gold producer. Boroo Singapore will hold approximately 55.9% of the issued and outstanding common shares of Steppe Gold on a fully diluted basis, immediately following the completion of the Boroo Gold Transaction.
Immediate and strong cash flows to Steppe Gold! Boroo Gold estimates over 400,000 oz of gold production from 2024 to 2031, with projected average annual production of approximately 60,000 oz in 2024, 2025 and 2026. In 2023, Boroo Gold had revenue of US$132 million on production of 67,315 oz of gold, with an AISC of $847 per oz, at an average achieved gold price of $1,957 per oz.
Boroo Gold is forecasting similar production levels in 2024, albeit with higher sustaining costs! The Boroo gold mine comes with a long and proud history of positive impact in Mongolia: Over US$1,020 million in benefits to Mongolia since 2003. Over US$17.5 million in donations and investments in local Soums between 2007 and 2023 under its framework of social responsibility.
Steppe Gold combined gold production in 2024 projected to be 90,000 oz, rising to an estimated annualized 150,000 oz in 2026 as the ATO Gold Mine Phase 2 Expansion is planned to come on stream in mid-2026.
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