After completing a due diligence review, Antares Mining and Exploration (ANZ-T) has exercised its option to acquire a $1.7-million convertible debenture of Steppe Gold (SPE-V).
The debenture is convertible into 7.2 million common shares of Steppe at 22 cents each, plus 7.7 million warrants to acquire an additional share at the same price within one year. Alternatively, the debenture can be converted into up to 20% of Steppe’s interest in three mineral projects in Kazakstan; Mizek, Kosmuran and Akbastau.
The transaction follows an initial $300,000 investment in Steppe executed in early June through a private placement of 1.5 million shares and 750,000 warrants.
Steppe will use the proceeds from the debenture to advance the Mizek gold project, which is expected to produce 80,000 oz. gold in its first year at a cash cost of about US$120 per oz. A portion of the proceeds will be used to pay the initial acquisition costs associated with the Kosmuran and Akbastan copper-gold-zinc properties, and to augment working capital.
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