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Steppe Gold to acquire Anacortes Mining in an all-share transaction

Kitco News

(Kitco News) - Steppe Gold (TSX: STGO) announced today it has entered into a binding letter of intent with Anacortes Mining (TSXV: XYZ) pursuant to which Steppe Gold will acquire all of the issued and outstanding common shares of Anacortes by way of a court approved plan of arrangement under the Business Corporations Act (British Columbia), in an all-share transaction.

The company said that under the terms of the binding agreement, Anacortes shareholders will receive 0.4532 of a Steppe Gold common share for each Anacortes common share, which represents consideration of approximately C$0.48 per Anacortes common share and a premium of 36% based on the closing prices of the Anacortes common shares on the TSX-V and the Steppe common shares on the TSX, each as of the close of trading on March 3, 2023.

According to a company press release, shareholders of Steppe Gold and Anacortes will own 79% and 21% of the combined company, respectively, on a basic basis.

"The proposed transaction is anticipated to create a leading junior gold producer with significant near-term growth. In addition to current production from Steppe Gold's ATO gold mine, which is expected to increase in scale with the current Phase 2 expansion, additional future growth would be supported by the development of the high-grade Tres Cruces oxide project in Peru, which is located approximately 10 km from the Lagunas Norte mine," the company said.

Importantly, Steppe Gold noted that the new combined company will have a potential development profile of over 200,000 ounces and a resource base of over 4.5 million gold equivalent ounces.

Steppe Gold is Mongolia's premier precious metals company. The company owns and operates the ATO gold mine.

Anacortes owns a 100% interest in the Tres Cruces gold project located in Peru. Tres Cruces is one of the highest-grade undeveloped gold oxide deposits globally and hosts oxide plus sulphide indicated resources of 2,474,000 oz at 1.65 g/t gold, and inferred resources of 104,000 oz at 1.26 g/t gold.

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