Steppe Gold Ltd shareholders have overwhelmingly approved the acquisition of Boroo Gold and the sale of the Tres Cruces Oxide Project to Boroo Singapore for C$12 million. The approval, with 99% support, was secured at the annual meeting. Following this transaction, Steppe Gold will become the largest primary gold producer in Mongolia.
The deal integrates Steppe’s ATO Gold Mine with Boroo Gold, aiming for an annual production of over 150,000 ounces of gold by 2026. Boroo Gold’s reported revenue of US$132 million in 2023 from 67,315 ounces of gold will provide immediate cash flows for the combined entity. The enlarged company expects to achieve cost savings through bulk purchasing and reduced administrative expenses.
Additionally, this acquisition expands Steppe’s exploration opportunities near its existing mines, allowing the company to focus more closely on its Mongolian assets by divesting the Tres Cruces Project. The transaction, expected to close around July 16, is subject to regulatory approvals from the Toronto Stock Exchange and Mongolian authorities.
