Steppe Gold, a premier gold and metals corporation, has recently announced that it has entered into a comprehensive share exchange agreement to acquire Mongolian-based Boroo Gold LLC. This merger indicates a significant historic moment for Steppe Gold, allowing it to expand its mining activities in Mongolia, a country renowned for its rich natural resources.
Under the terms of the agreement, Steppe Gold will acquire all issued and outstanding shares of Boroo Gold. To acquire these shares, Steppe Gold will issue up to 10,000,000 steppe shares, which will be placed in escrow and will become available for Boroo Gold’s shareholders over the next year. The Steppe shares issued to Boroo Gold’s shareholders will be subject to the standard hold period of four months from the closing date of the agreement, as per TSX Venture Exchange requirements.
The acquisition of Boroo Gold will expand Steppe Gold’s already robust portfolio in the mining sector. As an active coal and copper miner, Boroo Gold possesses substantial mining assets in Mongolia, including operating and exploration licenses. This acquisition will provide Steppe Gold with the opportunity to expand its operations and undertake multi-metal mining, thus diversifying its portfolio.
Boroo Gold’s impressive portfolio includes the high-grade gold deposits in the Selenge Province in Northern Mongolia. This acquisition by Steppe Gold illustrates its commitment to increasing its mineral base holdings through strategic deals. This also allows Steppe Gold to further solidify its foothold in Mongolia’s burgeoning gold and minerals market, thereby enabling it to be better positioned to serve the growing global demand for these precious resources.
Parallel to this avant-garde move, Steppe Gold has also agreed to sell its Tres Cruces Oxide Project based in Peru to Rio2 Limited. The sale is expected to advance the mutual interests of both corporations by unlocking value for shareholders and sharpening their strategic focus. By selling this asset, Steppe Gold will be able to focus more on its primary operations in Mongolia. On the other hand, the acquisition will provide Rio2 Limited with an additional revenue stream and an expanded operational base.
The Tres Cruces Oxide Project is an advanced-stage gold exploration project in Northern Peru, featuring high-grade oxide gold deposits. Rio2 Limited, being a multi-jurisdiction mining company, seeks to create shareholder value through the strategic acquisition of precious and base metal assets.
In sum, Steppe Gold’s decision to acquire Boroo Gold through a share exchange agreement, coupled with the sale of the Tres Cruces Oxide Project, is indeed a strategic move. It reflects the company’s focus on consolidating its position in Mongolia’s mining sector and its intelligent asset management. These decisions are expected to enhance shareholder value, stimulate economic activity and contribute to sustainable mining practices.
