Mongolia-based precious metals company Steppe Gold has secured up to $150m (Tg517.43bn) in financing to fund the construction of the second phase expansion at its Altan Tsagaan Ovoo (ATO) gold and silver project in Mongolia.

Located in the territory of Tsagaan Ovoo soum of Dornod province in eastern Mongolia, the ATO mine comprises one mining licence that covers 5,492 hectares.

The expansion project is expected to create 300 new jobs during the construction and operation phases.

Steppe Gold said the financing consists of three $50m tranches, comprising a $50m term loan from the Trade and Development Bank of Mongolia, a $50m senior secured credit facility and a $50 senior secured gold linked loan.

Production from the ATO phase two project is scheduled to commence in 2025.

Steppe Gold chairman and CEO Bataa Tumur-Ochir said: “This is a significant milestone for Steppe Gold and secures the future of the ATO Gold mine for the next 14 years.

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“It has been a challenging yet rewarding five years since we listed on the TSX, and the company has been working towards unlocking the full potential of the ATO Gold Mine through the phase two expansion.”

The ATO phase two expansion project is expected to produce 100,000oz of gold equivalent per annum from the fresh rock ore.

In May 2023, Steppe Gold agreed to acquire Canadian miner Anacortes Mining, which owns 100% of the Tres Cruces gold project in north-central Peru.

Situated near the existing Lagunas Norte project, the Tres Cruces project includes a large and underexplored land package.