Contango Ore completes $50 million stock and warrant offering

Contango ORE, Inc. (NYSE American: CTGO) completed an underwritten offering of common stock and pre-funded warrants, raising approximately $50 million in gross proceeds before expenses.

The Alaska-based gold exploration company sold 1,678,206 shares at $24.96 per share to two institutional investors. The offering also included pre-funded warrants to purchase 325,000 shares at $24.95 per warrant, which equals the share price minus the $0.01 exercise price per warrant.

Contango plans to allocate approximately $45 million of the net proceeds to buy back gold hedge contracts and about $700,000 to purchase gold put contracts for downside protection. Any remaining funds will support general corporate purposes and working capital.

Canaccord Genuity served as sole bookrunner for the offering. Cantor, National Bank of Canada Capital Markets, and ATB Cormark Capital Markets acted as co-managers.

The transaction was conducted under an effective shelf registration statement on Form S-3 that the Securities and Exchange Commission declared effective on November 27, 2024.

Contango operates in Alaska's gold exploration and development sector. The company holds a 30% interest in Peak Gold, LLC, which leases approximately 675,000 acres for exploration and development on the Manh Choh project. Kinross Gold Corporation's subsidiary owns the remaining 70% and operates the joint venture.

The company also maintains leases and interests in several other Alaska mining properties, including the Johnson Tract project, Lucky Shot project, and various state mining claims totaling more than 156,000 acres through its subsidiaries.

You May Also Be Interested In

• Daré Bioscience prices $6M direct offering at $1.37 per share
• Optimum Communications gets NYSE non-compliance notice over stock price
• Diana Shipping drops bid for Genco after price demands spike to $36.91