#United States #Contango ORE #Fairbanks #Common Stock #Pre-funded Warrants

Contango Ore Completes $50 Million Offering

In a significant move for the gold exploration sector, Contango ORE, Inc., trading on the NYSE American under the ticker CTGO, proudly announced the closure of its $50 million underwritten offering. This offering, which includes both common stock and pre-funded warrants, marks a pivotal moment in the company’s ongoing growth strategy.

Key Highlights of the Offering

The offering involved the issuance of 1,678,206 common shares at an attractive price of $24.96 per share, directed towards select institutional investors. Additionally, Contango made available pre-funded warrants for the purchase of 325,000 shares at a rate of $24.95 per share. These pre-funded warrants, which feature an exercise price of only $0.01 per share, are designed to provide greater flexibility for investors. The total gross proceeds from the offering amount to approximately $50 million, which will be utilized strategically within the company’s operations.

Allocation of Proceeds

Out of the gross proceeds, approximately $45 million is earmarked for the repurchase of gold hedge contracts, an essential move to mitigate risk and enhance financial stability. Additionally, around $700,000 will be allocated for purchasing gold put contracts to offer further downside protection against gold price volatility. The remaining funds will facilitate various corporate needs, including working capital and general operational expenses.

Leadership and Management Team

The offering was anchored by Canaccord Genuity, which acted as the sole bookrunner, showcasing its pivotal role in the transaction. Other notable contributors include Cantor, National Bank of Canada Capital Markets, and ATB Cormark Capital Markets, who functioned as co-managers for the offering.

Compliance and Investor Information

This offering aligns with an effective shelf registration statement on Form S-3 that the company filed with the U.S. Securities and Exchange Commission (SEC), which was declared effective on November 27, 2024. Investors can find the final prospectus supplement and detailed terms of the offering on the SEC's website, providing a transparent overview of the investment structure.

About Contango Ore

Contango ORE, Inc. is a prominent figure in the mining industry, particularly focused on gold exploration in Alaska. Holding a 30% stake in Peak Gold, LLC, the company is actively involved in developing the Manh Choh project, which encompasses approximately 675,000 acres dedicated to mining. The remaining ownership is held by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation.

Their operations also extend to other notable projects including the Johnson Tract and Lucky Shot, as well as extensive mining claims across Alaska that total over 145,280 acres. The ambition of Contango Ore to not only explore but effectively develop these substantial gold reserves reflects its commitment to growth in the mineral sector.

Looking Ahead

As Contango Ore continues to navigate the complexities of the mining industry, the recent offering serves as a testament to its strategic approach and commitment to leveraging opportunities for shareholder value. With a strong focus on optimizing its asset base and robust financial planning, Contango is well-positioned to capitalize on upcoming developments within the sector.

In conclusion, this successful completion of the offering marks a pivotal step in Contango Ore's growth trajectory, reinforcing its financial foundation while enabling the company to navigate the ever-evolving landscape of the gold mining industry, ensuring that it not only survives but thrives amidst market challenges.

For more about Contango Ore’s endeavors and to stay updated, visit Contango Ore's website.