The company, negotiating finance to expand output from the 60,000oz-a-year Altan Tsagaan Ovoo heap leach operation via a US$100 million-plus fresh-rock mining and CIL project to 150,000ozpa, has seen its share price (TSX:STGO) rise by more than 190% since the start of the year.

Sprott is buying all seven million C$2.15 subscription receipts in a non-brokered private placement. The units convert to common shares plus a warrant that can be converted to a common share within 24 months at a $3 strike price.

Steppe executive chairman Matthew Wood said the investment was a "strong endorsement" of Steppe's Mongolia gold strategy.

The company reported its first gold and silver sales from ATO in May this year and has said the COVID-19 pandemic had not materially impacted its operations. It is forecasting 60,000oz production at cash costs of about US$500/oz to yield more than $40 million of EBITDA in 2020.

New resource estimates for ATO and the Mungu epithermal project immediately north-east of ATO are expected soon.

Steppe shares gained nearly 17% Thursday on the Sprott news. The company has a current market capitalisation of C$132 million (US$97 million).