Steppe Gold Limited (TSX: STGO) has entered into an agreement with Triple Flag International Ltd for a short-term gold prepay facility.
One of the consequences of the zero covid policy in China and the attendant China/Mongolia border closures has been a shortage of available US dollars with banks in Mongolia. Steppe Gold sales revenue is received in Mongolian Tugrik. While most of its operating costs are also paid in local currency, we require US dollars to acquire reagents and to fund deliveries to Triple Flag. The Triple Flag Gold Prepay Facility allows Steppe Gold to continue to meet all of its obligations during this temporary market disruption.
The company said the prepay represents an elegant funding solution for a short term currency issue. The company is operating as planned with gold pours every two weeks and the advancement of the Phase 2 Expansion efforts continue.
Under the terms of the agreement Triple Flag has advanced net funds of US$4.6 million to Steppe Gold after fees and legal costs. The Triple Flag Gold Prepay Facility will be repaid over 6 months starting December 23, 2022 by six monthly deliveries of 500 oz of gold for a total of 3,000 oz.
For further information please visit: https://steppegold.com/
