#USA #mining #Contango ORE #Fairbanks #Peak Gold

Contango ORE Announces $21 Million Cash Distribution from Peak Gold JV

Contango ORE, Inc. (NYSE American: CTGO) has made headlines with a recent announcement detailing a cash distribution of $21 million from the Peak Gold joint venture (JV) for production from its second campaign of 2025. This marks a significant milestone, with total cash distributions from the Peak Gold JV amounting to $54 million so far this year.

The announcement was made on June 25, 2025, during the company's ongoing efforts in Alaska, where they successfully completed the second campaign of four planned for 2025. So far, approximately 36,000 ounces of gold have been produced for Contango's account, setting the stage for more achievements in the upcoming third campaign, scheduled to kick off in August 2025.

Rick Van Nieuwenhuyse, President and CEO of Contango, highlighted that the guidance for their 30% share of the Peak Gold JV’s production in 2025 is set at 60,000 ounces. This projection aligns with the long-term expectations for average annual production of approximately 58,750 ounces of gold per year through 2029. The all-in sustaining costs (AISC) for gold sold are estimated to be around $1,400 per ounce.

The company plans to take proactive financial measures by early paying off $7 million of principal against their credit facility, thereby reducing the debt balance to $23 million. Furthermore, Contango has reportedly delivered 11,900 ounces of gold into the July 31 hedge contracts using a carry trade strategy, which brings down the remaining hedge contract balance substantially.

Looking ahead, Contango anticipates cash distributions for 2025 from the Peak Gold JV to exceed $95 million, based on a projected gold price of $3,100 per ounce for the remainder of the year. This unexpected increase in cash flow is expected to be strategically utilized to bolster their cash position, reduce debt levels, and fulfill existing hedge contracts while progressing with the permitting activities on the Johnson Tract project.

About Contango

Contango ORE, Inc., based in Fairbanks, Alaska, is engaged in exploration activities primarily targeting gold and related minerals. The company holds a significant 30% interest in the Peak Gold JV, which manages exploration and development on the Manh Choh project, covering approximately 675,000 acres. The majority interest (70%) is owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation, which operates the Peak Gold JV.

In addition to its involvement in the Peak Gold JV, Contango has various significant assets, including a lease on the Johnson Tract project and the Lucky Shot project. The company also maintains 100% ownership of approximately 8,600 acres of peripheral mining claims across Alaska.

In conclusion, Contango ORE's recent announcement not only reflects their strong performance and promising outlook but also underscores the vital role of mining in Alaska's economy. Stakeholders and investors alike are keenly watching as Contango continues to make strides in the exploration and production of gold in the region. Detailed information regarding their operations and latest updates can be found on their official website at www.contangoore.com.