Contango ORE, Inc. (“Contango,” “CORE” or the “Company”) (NYSE American: CTGO), today announced the closing of its previously announced underwritten public offering (the “Offering”) of 1,600,000 shares of its common stock at a public offering price of $19.00 per share. Gross proceeds from the Offering were $30.4 million before deducting underwriting discounts, commissions, and Offering expenses. In addition, Contango has granted the underwriters a 30-day option to purchase up to an additional 240,000 shares of common stock.
The Company intends to use the net proceeds from the Offering to fund its contribution obligations to the Peak Gold JV for the Manh Choh project (a joint venture between Kinross 70% and Contango 30%), to continue exploration drilling for potential resource expansion at its Lucky Shot project, and to fund working capital requirements.
Maxim Group LLC and Freedom Capital Markets acted as joint book-runners for the Offering.
The Offering was made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-260511) previously filed with the U.S. Securities and Exchange Commission (“SEC”) and declared effective on November 17, 2021. The final terms of the Offering are disclosed in a final prospectus supplement which has been filed with the SEC. Copies of the final prospectus supplement and accompanying prospectus relating to the Offering may also be obtained by contacting Maxim Group LLC, at 300 Park Avenue, 16th Floor, New York, NY 10022, Attention: Prospectus Department, or by email at syndicate@maximgrp.com or telephone at (212) 895-3745 or by contacting Freedom Capital Markets, at 40 Wall Street, 58th Floor, New York, NY 10005, or by email at EquitySyndicate@freedomcapmkts.com or telephone at (800) 786-1469.
This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
ABOUT CORE
Contango is a NYSE American listed company that engages in exploration for gold and associated minerals in Alaska. Contango holds a 30% interest in Peak Gold, LLC (the “Peak Gold JV”), which leases approximately 675,000 acres of land for exploration and development on the Manh Choh project, with the remaining 70% owned by an indirect subsidiary of Kinross Gold Corporation (“Kinross”), operator of the Peak Gold JV. The Company also has a lease on the Lucky Shot project from the underlying owner, Alaska Hardrock Inc. and through its subsidiary has 100% ownership of approximately 8,000 acres of peripheral State of Alaska mining claims. Contango also owns a 100% interest in an additional approximately 137,280 acres of State of Alaska mining claims through its wholly owned subsidiary, which gives Contango the exclusive right to explore and develop minerals on these lands. Additional information can be found on our web page at www.contangoore.com.
