Steppe Gold Ltd. (TSX: STGO | OTCQX: STPGF | FSE: 2J9) has entered into a turnkey engineering, procurement, and construction contract (EPC contract), with Hexagon Build Engineering LLC, an experienced construction group active in Mongolia and internationally, for the Phase 2 Expansion at the ATO Gold Mine.
As at the date of execution of the EPC contract, the contract amount payable to Hexagon for the full performance of the work under the EPC contract is approximately US$148.4M. The contract amount is fully funded by a project finance package that has been made available to the company and its affiliates by TDB Capital Pte Ltd. and the Trade and Development Bank of Mongolia.
Mr. Bataa Tumur-Ochir, chairman, and CEO commented, “With our landmark financing package secured and drawdowns now commenced, we are very excited to announce the signing of the EPC contract for the design and construction of our ATO Phase 2 Expansion. We are fully aligned with our partners at the TDB Group, and we are very excited to partner with Hexagon, a leading Mongolian construction group. This allows us to continue work underway at the ATO site and accelerate plans for a busy construction year in 2024.”
An initial agreement for funding of US$50M through a secured loan with Trade and Development Bank of Mongolia has been signed and drawdowns have commenced. This first tranche will be primarily used to order equipment and long lead items.
The first concentrate production and sales from Phase 2 is anticipated in early 2026, and the fresh rock mine expansion life is 12 years, extending open pit mining and milling operations to December 2036.
Further, Steppe Gold has reported that the open pit model demonstrates the fresh rock phase generating 1,237,000oz Au Eq recovered over 12 years, at an average Au Eq oz of 103,000oz/a.
To find out more, please visit www.steppegold.com
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