Steppe Gold (STGO.TO) entered into a settlement agreement with Triple Flag Precious Metals (TFPM.TO, TFPM) that fully resolves all outstanding litigation, arbitration proceedings and disputes relating to the company's stream agreement and gold pre-pay agreement.
The agreement also establishes a revised long-term streaming framework and satisfies all outstanding delivery obligations under those arrangements, it said. The company, under the settlement agreement, delivered all outstanding gold and silver obligations under the existing arrangements, including full satisfaction of the gold prepay agreement and all arrears under the stream agreement.
"We are pleased to have reached a mutually beneficial resolution with Triple Flag that resolves all outstanding matters between our companies," said Chief Executive Tserenbadam Dugeree. "The settlement strengthens our position as we focus on advancing the Phase 2 Expansion of the ATO Project, growing production and continuing to execute our long-term strategy."
Under the amended agreement, Steppe Gold will make fixed gold deliveries totaling 34,770 ounces of gold through 2036, after which the stream converts to a 1.5% interest in gold production from the ATO mine, subject to a quarterly cap of 500 ounces. The amended obligations remain secured by the ATO mine and supported by guarantees from Steppe Gold and Boroo Gold, it said.
Shares of the company were last seen up $0.04 to $1.35 on the Toronto Stock Exchange.
Price: $1.35, Change: $+0.04, Percent Change: +3.05%