Steppe Gold Ltd., a prominent gold producer in Mongolia, has achieved a significant financing milestone by drawing down $40.4 million for the Phase 2 Expansion of its wholly owned ATO Gold Mine. This marks the second payment towards the ambitious $150 million expansion project, which is set to transform the mine's operational capabilities and output.
Jeremy South, the Chief Financial Officer of Steppe Gold, detailed the allocation of the newly secured funds. The financing will primarily cover the procurement of essential long lead items, mobilization expenses, initial construction activities, and foundational groundwork. Among the critical equipment to be acquired are flotation cells, grinding mills, cluster cyclones, thickener units, filters, and pumping systems, all pivotal for the mine's expanded operations.
The Phase 2 Expansion is on track with its projected timelines and budgets, with commissioning anticipated in the first quarter of 2026. The entire $150 million project is fully funded through a comprehensive project finance package provided by TDB Capital and the Trade and Development Bank of Mongolia, showcasing strong financial backing and confidence in the project's success.
South highlighted Steppe Gold's dedication to advancing the expansion with efficiency and effectiveness. The successful drawdown not only reflects the company's robust financial health but also its strategic approach to project development and execution. By securing the necessary financing and moving forward with procurement activities, Steppe Gold is well-positioned to unlock additional value and reinforce its status as a leading gold producer in Mongolia.
The Phase 2 Expansion of the ATO Gold Mine is expected to significantly boost the mine's production capacity, thereby contributing to Steppe Gold's growth and profitability in the forthcoming years. This development underscores the company's commitment to operational excellence and its pivotal role in Mongolia's mining industry.
