Steppe Gold Inc. has filed a preliminary prospectus in connection with a proposed initial public offering (IPO) of its common shares.
The offering is being made through a underwriting syndication led by Eight Capital and including PI Financial Corp. and Echelon Wealth Partners Inc.
Peterson McVicar LLP and Bennett Jones LLP act as legal counsel to Steppe Gold and the underwriters.
Toronto based Steppe Gold is a precious metals exploration and development company focussed on opportunities in Mongolia. In September 2017, Steppe Gold acquired advanced-staged Altan Tsagaan Ovoo (ATO) Project in Mongolia from Centerra Mongolia, a subsidiary of Centerra Gold Inc., for aggregate consideration of US $21.78 million. Steppe Gold has also acquired two exploration stage mineral properties in Mongolia.
The ATO Project is comprised of one mining license (MV-017111) over an area of 5,492.63 ha. The ATO Project is located in the territory of Tsagaan Ovoo soum, Dornod province of Eastern Mongolia, 660 km east of the Ulaanbaatar, the capital of Mongolia, 120 km northwest of Choibalsan, the provincial capital of Dornod Province, 38 km west of Tsagaan Ovoo soum, in the Davkhariin Aryn valley, and is at the junction of rivers of Bayan and Duruu. It is near the foot of the mountains Delger Ulziit, Bayan, Namkhai Hill and Yaruu. The ATO Project area was initially explored by Cogegobi LLC, a wholly-owned subsidiary of French nuclear company Areva, starting in 1997 before the property was optioned to Centerra Mongolia in 2010.
On October 6, 2017, Steppe Gold completed a two-tranched private placement raising $5.455 million in gross proceeds.
In connection with the ATO acquisition, Steppe Mongolia, Steppe Mongolia and Steppe BVI entered into a metals purchase and sale agreement dated August 11, 2017 with Triple Flag Mining Finance Bermuda Inc. pursuant to which Steppe BVI agreed to sell to Triple Flag Bermuda a portion of the gold and silver produced from the ATO Project.
As consideration for the grant of the stream by Steppe BVI, Triple Flag Bermuda agreed to make an upfront deposit against the purchase price for the gold and silver of US $23 million in two $11.5 million tranches. Triple Flag Bermuda also subscribed for 2,000,000 units at price of $2.00 per unit for $4,000,000.
Currently, Steppe Gold has 29,040,911 common shares and US $5.1 million in promissory notes outstanding. There is no person or entity owning directly or indirectly 10% and more of the outstanding shares.
photo credit: Steppe Gold