Contango Announces $9.0 Million Cash Distribution from the Peak Gold JV for Remaining Production from Campaign #1-2025

Rhea-AI Summary

Contango ORE (NYSE American: CTGO) has received a $9 million cash distribution from the Peak Gold JV on April 24, 2025, bringing total distributions from Manh Choh profits to $33 million in 2025. The company has completed the first of four campaigns in 2025, producing approximately 20,000 ounces of gold for Contango's account, with the second campaign set to begin in mid-May 2025.

The company's 2025 gold production target remains at 60,000 ounces with all-in-sustaining costs of $1,625 per ounce. Contango has prepaid $8.2 million of principal against its credit facility, reducing the balance to $30.1 million. The company has also reduced its hedge contract by 11,939 ounces to 74,800 ounces. Q1-2025 financial results will be released on May 14, 2025, and a preliminary economic assessment for the Johnson Tract project is expected by end of April.

Positive

• Received $33M in cash distributions from Manh Choh operations in 2025
• Successfully produced 20,000 ounces of gold in first campaign
• Reduced credit facility debt by $8.2M
• Decreased hedge contract exposure by 11,939 ounces

Negative

• Significant remaining credit facility balance of $30.1M
• Large remaining hedge contract obligation of 74,800 ounces

FAIRBANKS, Alaska, April 24, 2025 /PRNewswire/ - Contango ORE, Inc. ("Contango" or the "Company") (NYSE American: CTGO) is pleased to announce that the Peak Gold JV made a cash distribution in the amount of $9 million ("M") to Contango on April 24, 2025. Including the prior cash distributions received during the first quarter of 2025 ("Q1-2025"), the total distributions received to date from Manh Choh profits from gold sales in 2025 total $33 M. The Peak JV has completed the first of four campaigns in 2025, producing approximately 20,000 ounces of gold for Contango's account year to date, with the second campaign scheduled to commence in mid-May 2025.

Rick Van Nieuwenhuyse, the Company's President and CEO stated, "Operations remain on track at Manh Choh with Contango's share of gold production for 2025 expected to be 60,000 ounces at the previously guided all-in-sustaining costs ("AISC") of $1,625 per ounce of gold sold for 2025. In early April, we prepaid $8.2 M of principal against the credit facility, reducing the balance to $30.1 M. We continue to deliver into the hedge contracts with a further reduction of 11,939 ounces credited against our outstanding balance and reducing the total hedge contract to 74,800 ounces. We plan to release financial results from the Q1-2025 on May 14, 2025."

Mr. Van Nieuwenhuyse continued, "On our Johnson Tract, we are in final stages of completing the previously announced preliminary economic assessment ("PEA") and expect to have it released by the end of April."

ABOUT CONTANGO

Contango is a NYSE American listed company that engages in exploration for gold and associated minerals in Alaska. Contango holds a 30% interest in the Peak Gold JV, which leases approximately 675,000 acres of land for exploration and development on the Manh Choh project, with the remaining 70% owned by KG Mining (Alaska), Inc., an indirect subsidiary of Kinross Gold Corporation, operator of the Peak Gold JV. The Company and its subsidiaries also have (i) a lease on the Johnson Tract project from the underlying owner, CIRI Native Corporation, (ii) a lease on the Lucky Shot project from the underlying owner, Alaska Hardrock Inc., (iii) 100% ownership of approximately 8,600 acres of peripheral State of Alaska mining claims, and (iv) a 100% interest in approximately 145,000 acres of State of Alaska mining claims that give Contango the exclusive right to explore and develop minerals on these lands. Additional information can be found on our web page at www.contangoore.com.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements regarding Contango that are intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, based on Contango's current expectations and includes statements regarding future results of operations, quality and nature of the asset base, the assumptions upon which estimates are based and other expectations, beliefs, plans, objectives, assumptions, strategies or statements about future events or performance (often, but not always, using words such as "expects", "projects", "anticipates", "plans", "estimates", "potential", "possible", "probable", or "intends", or stating that certain actions, events or results "may", "will", "should", or "could" be taken, occur or be achieved). Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those reflected in the statements. These risks include, but are not limited to: the risks of the exploration and the mining industry (for example, operational risks in exploring for and developing mineral reserves; risks and uncertainties involving geology; the speculative nature of the mining industry; the uncertainty of estimates and projections relating to future production, costs and expenses; the volatility of natural resources prices, including prices of gold and associated minerals; the existence and extent of commercially exploitable minerals in properties acquired by Contango or the Peak Gold JV; ability to realize the anticipated benefits of the Peak Gold JV; potential delays or changes in plans with respect to exploration or development projects or capital expenditures; the interpretation of exploration results and the estimation of mineral resources; the loss of key employees or consultants; health, safety and environmental risks and risks related to weather and other natural disasters); uncertainties as to the availability and cost of financing; Contango's inability to retain or maintain its relative ownership interest in the Peak Gold JV; inability to realize expected value from acquisitions; inability of our management team to execute its plans to meet its goals; the extent of disruptions caused by an outbreak of disease, such as the COVID-19 pandemic; and the possibility that government policies may change, political developments may occur or governmental approvals may be delayed or withheld, including as a result of presidential and congressional elections in the U.S. or the inability to obtain mining permits. Additional information on these and other factors which could affect Contango's exploration program or financial results are included in Contango's other reports on file with the U.S. Securities and Exchange Commission. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Contango does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

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SOURCE Contango Ore

FAQ

What is the total cash distribution received by CTGO from Manh Choh operations in 2025?

Contango has received a total of $33 million in cash distributions from Manh Choh profits in 2025, including the latest $9 million distribution on April 24, 2025.

How many ounces of gold has CTGO produced in the first campaign of 2025?

Contango has produced approximately 20,000 ounces of gold during the first campaign of 2025.

What is CTGO's expected gold production and AISC for 2025?

Contango expects to produce 60,000 ounces of gold in 2025 at an all-in-sustaining cost (AISC) of $1,625 per ounce.

How much has CTGO reduced its credit facility and hedge contract in 2025?

Contango prepaid $8.2 million of principal, reducing the credit facility to $30.1 million, and decreased its hedge contract by 11,939 ounces to 74,800 ounces.