Steppe Gold Limited (TSE:STGO) (FRA:2J9) said it aims to list its shares on the Mongolian Stock Exchange (MSE) in April next year or before, in a bid to allow more investors from the country to participate in its success.
The miner has hired Ard Securities as lead advisor and underwriter in connection with the proposed secondary listing, which it plans to combine, with a share placing.
READ: Steppe Gold announces 3Q cash flow of US$12.7 million from its ATO gold mine in Mongolia
"Steppe Gold already has over 20% of its shares owned by Mongolian investors and, with this move, we are reaffirming our commitment to enable more Mongolians to share in the success of Steppe Gold," said Bataa Tumur-Ochir, Steppe Gold's CEO in a statement.
"Steppe Gold has built a strong reputation for community engagement and support, job creation and responsible mining already, and this proposed listing is aligned with our goal to create a national champion in precious metals, and an important contributor to Mongolia's economic success."
Amarbayasgalan Enhsayhan, executive chairman of Ard Securities (Mongolia's leading brokerage and financial advisor) and the head of investment banking at its parent firm Ard Financial Group, added: "We are witnessing an increased interest from Mongolia's growing retail investor base and they are excited to participate in the success of a home-grown mining company with a demonstrated success story.
"Mongolia is a proud mining country and Steppe Gold has quickly established itself as a great example of responsible mining and job generation in this high growth sector. We want to make this deal a case study for listing in this tough environment."
Steppe Gold began producing gold at its flagship Altan Tsaagan Ovoo (ATO) mine in March this year and is currently ramping up operations there. It is bidding to expand the production in a second phase project through mining fresh rock ores to produce 150,000 ounces equivalent a year.
The company also has the Uudam Khundii (UK) gold project, which is an 80:20 joint venture between Steppe and the Bayankhongor provincial government.
The proceeds of the placing associated with the listing will be used for Phase 2 expansion at its ATO mine, added Steppe on Monday.
Contact the author at giles@proactiveinvestors.com
