Business
Queen's Road Capital Announces Investment in Contango ORE
Hong Kong, Hong Kong--(Newsfile Corp. - April 9, 2022) - Queen's Road Capital Investment Ltd....
About this update from Queen's Road Capital Investment Ltd.
[{"type":"text","content":"Queen's Road Capital Announces Investment in Contango OREHong Kong, Hong Kong--(Newsfile Corp. - April 9, 2022) - Queen's Road Capital Investment Ltd. (TSXV: QRC) (the \"Company\" or \"QRC\") is pleased to announce that it has entered into a binding agreement with Contango ORE, Inc. (\"CORE\") whereby the Company will purchase US$20,000,000 of convertible debentures to be issued by CORE.The convertible debentures will have a 4-year term, carry an 8.0% coupon (6.0% payable in cash and 2.0% payable in shares), a 3% establishment fee and will be convertible into CORE common shares at a price of $30.50.CORE is a U.S. gold development company that owns a 30% equity interest in the Peak Gold, LLC partnership (\"Peak Gold\") with Kinross Gold Corp. (\"Kinross\"), the 70% owner and manager. Peak Gold is developing the Manh Choh deposit located in Alaska on lands owned by the Alaska Native Tetlin Tribe. Peak Gold has a typical mining lease agreement with the Tetlin Tribe pursuant to which the Tetlin Tribe will receive royalty payments as well as commitments for jobs and training for tribal members. The feasibility study at Manh Choh is scheduled for completion during the first half of 2022 with first gold pour scheduled for 2024. Kinross has advised CORE that it anticipates producing over 1 million ounces of gold at Peak Gold over a 4.5-year mine life based on current resources with an estimated All-in Sustaining Costs (ASIC) of $750/oz and estimated total capital costs of up to $130 million. Ore mined at Peak Gold will be trucked to Kinross' Fort Knox mill, resulting in anticipated capital cost savings and an accelerated permitting process.CORE also owns the Lucky Shot gold property in Alaska. Lucky Shot historically produced 250,000 ounces at a grade of 40g/t gold. CORE is led by Mr. Rick Van Nieuwenhuyse. Rick founded Novagold Resources Inc., which is developing the world class Donlin gold deposit in Alaska jointly with Barrick Gold Corp., and NovaCopper Inc., now Trilogy Metals Inc., which is developing the Ambler polymetallic deposit in Alaska jointly with South32 Ltd.The proceeds from the convertible debenture investment are expected to be used to fund CORE's share of costs at Peak Gold and advance exploration activities at its wholly-owned gold projects in Alaska, including the Lucky Shot property.Warren Gilman, Chairman & CEO...