If you are interested in the gold sector then a piece of development from earlier this week may well be worth perusing. On July 11, Steppe Gold Ltd. (TSX: STGO) (OTCQX: STPGF) came into the news cycle after it announced that it had inked a binding term sheet for $150 million in financing for fully funding the completion and construction of Phase 2 expansion of the ATO Gold Mine.
It was a significant new investment and one that may bring the stock into focus among investors as well. The company also provided some of the highlights with regards to the Phase 2 expansion and it could be a good idea to take a quick look at some o the important ones.
The initial funding is going to consist of $50 million which is going to be deployed toward ordering long lead items and vital equipment. Once the Phase 2 expansion is completed, the company would get into the financing payback period. More importantly, the first concentrate sales and production from the Phase 2 expansion is expected to start at some point this year.
The company noted that the total gross revenue from the mine over the next 14 years is expected to hit $2.2 billion and that is inclusive of the current oxide phase. All the stakeholders and the local communities in the vicinity of the project are supporting the project. Additionally, as many as 300 new jobs would be created by Steppe Gold thanks to the operation and construction phases.