It's about half the initial capex required for the phase two expansion, which was put at $128 million in a feasibility study last month.

Steppe said $59.7 million of the debt capital was through the Gold-2 National Programme, facilitated by the central bank.

The further $5 million was a prepaid gold sales loan from the Trade and Development Bank of Mongolia.

"The company is highly encouraged by the trust placed in us by leading Mongolian financial institutions," Steppe president and CEO Bataa Tumur-Ochir said.

"This is a tremendous vote of support for Steppe Gold, for the Mongolian mining industry and will add value to Mongolia's export revenue and foreign reserves position."

Steppe has said it expected to raise about $1.75 million to help fund the expansion through its planned cross-listing on the Mongolian Stock Exchange.

Tumur-Ochir said Steppe believed 2022 would be the year of rapid growth and expansion with full production and further financing for phase two.

Production began at ATO in April 2020, with the phase two expansion expected to more than double output to 150,000 ounces of gold annually.

Phase two is set to take ATO's mine life to 12.5 years, produce gross revenues of $1.72 billion and EBITDA of $584 million, with site AISC of $853/oz gold-equivalent, according to the feasibility study.

It was underpinned by a "dramatic" resource update earlier this year which doubled the resource to 2.45 million ounces Au-eq. 

Steppe said it had all the major permits to fast-track development.

Despite "significant headwinds" from COVID lockdowns, border closing and supply chain issues, Tumur-Ochi said Steppe had continued full scale mining and stacking operations in 2021.

It had reported revenue of $10.8 million for the June quarter and ended the period with cash and equivalents of about $26.8 million.

Its Toronto-listed shares (TSX: STGO) rose 4.8% yesterday but have fallen about 40% over the past year, with its close of C$1.30 valuing it at $82 million (US$49 million).