Business
Contango ORE Announces Private Placement of Common Stock and Year-End Update
HOUSTON / Dec 23, 2022 / Business Wire / Contango ORE, Inc. (“CORE” or the “Company”) (NYSE American: CTGO) announced today the issuance and sale of an aggregat
About this update from Contango Silver & Gold Inc.
[{"type":"text","content":"HOUSTON / Dec 23, 2022 / Business Wire / Contango ORE, Inc. (“CORE” or the “Company”) (NYSE American: CTGO) announced today the issuance and sale of an aggregate of 283,500 shares for $20.00 per share (the “Shares”) of the Company’s common stock, par value $0.01 per share (the “Common Stock”), and warrants (the “Warrants”) entitling each purchaser to purchase shares of Common Stock for $25.00 per share (the “Warrant Shares” and together with the Common Stock and the Warrants, the “Securities”), in a private placement (the “Private Placement”) pursuant to Subscription Agreements, (the “Subscription Agreements”) dated as of December 23, 2022 between the Company and certain accredited investors (the “Purchasers”). The Subscription Agreements include customary representations, warranties, and covenants by the Purchasers and the Company. Net proceeds totaled approximately $5.6 million. The Company will use the net proceeds from the Private Placement to fund its exploration and development program and for general corporate purposes. The Securities sold were not registered under the Securities Act of 1933, as amended, but the Common Stock issued in the offering and the shares of Common Stock issued upon exercise of the Warrants are subject to a Registration Rights Agreement allowing the shares to be registered by the holders at a future date. Petrie Partners Securities, LLC acted as sole placement agent on a portion of the transaction. Rick Van Nieuwenhuyse, the Company’s President and Chief Executive Officer, said, “This equity capital raise will allow us to continue to advance our 30% interest in the Peak Gold, LLC joint venture (PGJV) while we arrange debt financing to fund the remaining balance of funds necessary to place the Manh Choh project into production. Kinross, the manager, operator and 70% owner of the PGJV has communicated at our last joint venture meeting that the project remains on schedule and on budget. The Camp facilities located in Tok, Alaska are nearing completion and construction work will continue through the winter months on the development of the Manh Choh project site to ensure that the project remains on schedule for first gold production in the second half of 2024. I am also happy to report that the project is approaching 50% contracted/committed and is trending on budget – meaning that work is being comple...