Union files complaint against Orla Mining, alleging violation of worker rights in Mexico
The complaint is only the second of its kind made from Canada using CUSMA’s RRM process since the trade deal came into force in 2020.
Steppe Gold (TSX: STGO) has entered an arrangement agreement to acquire all outstanding shares of Anacortes Mining (TSXV: XYZ), formalizing the previously announced all-stock deal to combine the two precious metals producers.
On March 6, the Mongolia-focused gold miner signed a binding letter of intent (LOI) to purchase Anacortes, whose operations are based in Peru. This transaction, says Steppe, would create “a leading junior gold producer with significant near-term growth.”
Steppe operates the ATO gold mine located in eastern Mongolia, where the company is undergoing a Phase 2 expansion to scale up its production to 100,000 ounces of gold-equivalent per annum and extend the remaining mine life to 14 years. The existing Phase 1 oxide operation started in 2020 and has another three years to run.
According to the company, additional future growth from the ATO mine would now be supported by the development of Anacortes’ high-grade Tres Cruces oxide project in Peru, which has the potential to add 68,000 ounces of gold production per year. The project is located approximately 10 km from the Lagunas Norte mine previously held by Barrick Gold.
“This transaction transforms Steppe Gold into a multi-asset, multi-jurisdiction gold company with existing production and development projects in two of the most exciting and still untapped gold provinces in the world in both Mongolia and Peru,” executive chairman Matthew Wood said in a news release. “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.”
“Our vision is to build a 200,000 oz. gold-equivalent production profile, with our ATO Phase 2 expansion project expected to come online in 2025 and the Tres Cruces mine moving to production soon thereafter,” CEO Bataa Tumur-Ochir added.
“The Tres Cruces project has many similarities to our ATO project, with an oxide deposit at surface that can be quickly brought into production with significant upside in the underlying fresh rock.”
As previously agreed, Anacortes shareholders will receive 0.4532 of a Steppe Gold common share for each share held, which represents a consideration of about C$0.48 per share and a 36% premium to the companies’ last stock close.
Shares of Anacortes Mining traded at C$0.44 by noon EDT Monday, up 4.8% for the session, giving the Canadian junior a market capitalization of C$18.3 million.
Upon deal completion, Steppe Gold shareholders will hold a 79% stake in the combined business while Anacortes shareholders will own the remaining 21%.
