Contango ORE Announces Pricing of $30.4 Million Underwritten Public Offering of Common Stock
24 Julho 2023 - 9:30AM
Business Wire
Contango ORE, Inc. (“Contango,” “CORE” or the “Company”) (NYSE
American: CTGO), today announced the pricing 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 are expected to
be $30.4 million before deducting underwriting discounts,
commissions, and estimated 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.
Rick Van Nieuwenhuyse, the Company’ President and Chief
Executive Officer, said, "This financing is an important milestone
for the Company as we are pleased to announce that Contango is now
fully funded to reach production at the Manh Choh mine, which is
scheduled to commence full-scale production in the second half of
2024. This financing will allow us to fully utilize our secured $65
million credit facility with ING Capital LLC and Macquarie Bank
Limited and, in turn, meet the final funding obligations at the
Manh Choh mine. It will also allow us to start an exploration drill
program at the Lucky Shot project, primarily focused on in-fill and
expansion drilling of the Lucky Shot vein structure. Once all
assays and geologic modeling are completed, we will update our S-K
1300 Resource Technical Report on the Lucky Shot project. We also
anticipate this financing will bring broader market awareness and
increased trading volume as we bring Alaska’ next gold mine into
production."
Maxim Group LLC and Freedom Capital Markets are acting as joint
book-runners for the Offering. The Offering is expected to close on
or about July 26, 2023, subject to the satisfaction of customary
closing conditions.
The Offering is being 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 shares may be offered
only by means of a prospectus. A preliminary prospectus supplement
and the accompanying prospectus relating to and describing the
terms of the Offering, which form a part of the effective
registration statement, have been filed with the SEC and are
available on the SEC’s website at www.sec.gov. The final terms of
the Offering will be disclosed in a final prospectus supplement to
be filed with the SEC. When available, 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.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding
CORE that are intended to be covered by the safe harbor for
“forward-looking statements” provided by the Private Securities
Litigation Reform Act of 1995, based on CORE’s current expectations
and includes statements regarding future results of operations,
quality and nature of the asset base, the assumptions upon which
estimates are based and other expectations, beliefs, plans,
objectives, assumptions, strategies or statements about future
events or performance (often, but not always, using words such as
“expects”, “projects”, “anticipates”, “plans”, “estimates”,
“potential”, “possible”, “probable”, or “intends”, or stating that
certain actions, events or results “may”, “will”, “should”, or
“could” be taken, occur or be achieved). Forward-looking statements
are based on current expectations, estimates and projections that
involve a number of risks and uncertainties, which could cause
actual results to differ materially from those reflected in the
statements. These risks include, but are not limited to:
satisfaction of customary closing conditions related to the
Offering and sale of the shares of common stock; Contango’s ability
to complete the Offering; the risks of the exploration and mining
industry (for example, operational risks in exploring for,
developing mineral reserves; risks and uncertainties involving
geology; the speculative nature of the mining industry; the
uncertainty of estimates and projections relating to future
production, costs and expenses; the volatility of natural resources
prices, including prices of gold and associated minerals; the
existence and extent of commercially exploitable minerals in
properties acquired by CORE or the Peak Gold JV; ability to realize
the anticipated benefits of the Peak Gold JV; potential delays or
changes in plans with respect to exploration or development
projects or capital expenditures; the interpretation of exploration
results and the estimation of mineral resources; the loss of key
employees or consultants; health, safety and environmental risks
and risks related to weather and other natural disasters);
uncertainties as to the availability and cost of financing; CORE’s
inability to retain or maintain its relative ownership interest in
the Peak Gold JV; inability to realize expected value from
acquisitions; inability of our management team to execute its plans
to meet its goals; the extent of disruptions caused by an outbreak
of disease, such as the COVID-19 pandemic; and the possibility that
government policies may change, political developments may occur or
governmental approvals may be delayed or withheld, including as a
result of presidential and congressional elections in the U.S. or
the inability to obtain mining permits. Additional information on
these and other factors which could affect CORE’s exploration
program or financial results are included in CORE’s other reports
on file with the SEC. Investors are cautioned that any
forward-looking statements are not guarantees of future performance
and actual results or developments may differ materially from the
projections in the forward-looking statements. Forward-looking
statements are based on the estimates and opinions of management at
the time the statements are made. CORE does not assume any
obligation to update forward-looking statements should
circumstances or management’s estimates or opinions change.
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version on businesswire.com: https://www.businesswire.com/news/home/20230723841193/en/
Contango ORE, Inc. Rick Van Nieuwenhuyse (713) 877-1311
www.contangoore.com
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