- Canadian investor Eric Sprott has acquired a C$15 million stake in Mongolia-based precious metals company Steppe Gold (STGO)
- The company issued just under seven million units at a price of $2.15 each, all of which were acquired by Eric
- Each unit is comprised off one common share and one common share purchase warrant, exercisable at a price of $3.00 per share
- The proceeds will be used to fund exploration and development work at Steppe Gold’s projects in Mongolia
- Steppe Gold (STGO) is currently down 3.04 per cent and is trading at $2.87 per share
Canadian investor Eric Sprott has acquired a C$15 million stake in Mongolia-based precious metals company Steppe Gold (STGO).
Through a corporation beneficially owned by him, Eric acquired a total of 6,976,944 units at a price of $2.15 each. These units are comprised of one common share in Steppe Gold and one common share purchase warrant.
Each warrant is exercisable at a price of $3.00 per share over a period of 24 months from the date of issuance.
In connection with the financing, Steppe Gold paid a finder’s fee of $600,000 to certain parties for their services.
Commenting on the acquisition, Eric said his first investment in Steppe Gold is an exciting one.
“I am encouraged by how the team has demonstrated strong execution capabilities by bringing high-margin gold production online and can continue to expand their production while further exploring their two exciting gold and silver licenses,” he added.
Steppe Gold intends to use the proceeds to advance exploration and development work at it projects in Mongolia, which include the Altan Tsagaan Ovoo project, the Mungu project, and the Uudam Khundii project.
Bataa Tumur-Ochir, CEO of Steppe Gold, said Eric investment is a strong vote of confidence for the company.
“We are very happy to receive further foreign investment into Mongolia and into Steppe Gold as one of the world’s newest gold producers.
“This investment from Eric Sprott is a great endorsement of our team and our assets and allows us to accelerate our exploration programs as well as production expansion initiatives,” he said.
Steppe Gold (STGO) is down 3.04 per cent and is trading at $2.87 per share at 11:30am EDT.