Steppe Gold Ltd., a prominent gold producer in Mongolia, has achieved a significant financing milestone by drawing down $40.4 million for the Phase 2 Expansion of its wholly owned ATO Gold Mine. This development represents the second payment towards the ambitious $150 million expansion project, which is set to transform the mine's operational capabilities.
Jeremy South, the Chief Financial Officer of Steppe Gold, highlighted the allocation of the funds towards critical components of the expansion. These include the procurement of essential long lead items, mobilization costs, early construction works, and foundational activities. Among the key equipment being acquired are flotation cells, grinding mills, cluster cyclones, thickener units, filters, and pumping systems, all of which are pivotal for the mine's enhanced operations.
The Phase 2 Expansion is on track with its projected timelines and budgets, with commissioning anticipated in the first quarter of 2026. The project's financial backing comes from a comprehensive project finance package provided by TDB Capital and the Trade and Development Bank of Mongolia, ensuring the $150 million initiative is fully funded.
South reiterated Steppe Gold's dedication to the project's success, stating the financing milestone reflects the company's robust financial health and strategic project development approach. By advancing procurement activities and securing necessary financing, Steppe Gold is well-positioned to unlock additional value and reinforce its status as a leading gold producer in Mongolia.
The expansion is expected to significantly boost the ATO Gold Mine's production capacity, driving Steppe Gold's growth and profitability in the foreseeable future. This development not only underscores the company's commitment to operational excellence but also contributes to the broader economic landscape of Mongolia's mining sector.
