Steppe Gold, a prominent Mongolian mining company, has taken a decisive step towards consolidating its position in the gold mining sector by entering into a share exchange agreement to acquire Boroo Gold. This acquisition is a cornerstone in Steppe Gold's strategy to emerge as Mongolia's premier gold producer, showcasing the company's ambitious growth plans and its commitment to operational excellence.
In addition to the acquisition, Steppe Gold has successfully negotiated the sale of the Tres Cruces Oxide Project to Boroo Singapore for an estimated 12 million Canadian dollars, with payments spread over 18 months. This move not only streamlines Steppe Gold's asset portfolio but also injects significant capital into the company, enhancing its financial stability and enabling further investments in its core operations.
Jeremy South, Steppe Gold's Chief Financial Officer, highlighted the strategic importance of these transactions. According to South, the acquisition accelerates Steppe Gold's evolution into a multi-asset mining group with a strong focus on Mongolia, leveraging the current favorable gold market conditions to bolster its cash flow and production capabilities.
Looking ahead, Steppe Gold is optimistic about its production outlook, with expectations to reach a run rate of approximately 90,000 ounces of gold by the end of 2024. The company's projections are even more ambitious for the coming years, aiming for over 150,000 ounces by 2026. Boroo Gold, on the other hand, is set to significantly increase its gold production from 2024 to 2031, with annual averages expected to be around 60,000 ounces during the initial years.
This strategic expansion underscores Steppe Gold's dedication to delivering value to its shareholders while pursuing sustainable growth through carefully selected acquisitions and operational improvements. With these developments, Steppe Gold is not only reinforcing its leadership in Mongolia's mining industry but also setting the stage for long-term success in the global gold market.
