Contango ORE, Inc. - CTGO STOCK NEWS

Contango ORE (NYSE American: CTGO) has successfully acquired HighGold Mining (TSX-V: HIGH, OTCQX: HGMIF) through a court-approved plan of arrangement under the Business Corporations Act (British Columbia). The acquisition was approved by HighGold shareholders on June 27, 2024, and the Supreme Court of British Columbia on July 2, 2024.

Through this acquisition, Contango has issued 1,698,887 shares of its common stock to HighGold shareholders. HighGold's shares will be delisted from the TSX Venture Exchange on July 11, 2024, and HighGold will cease to be a reporting issuer.

Contango aims to boost gold production to 200,000 ounces annually within five years, utilizing its Direct Ship Ore model. Additionally, Darwin Green, HighGold's CEO, will join Contango's board of directors.

Contango ORE announced the first gold pour from the Manh Choh mine, a joint venture with Kinross. The gold was processed at Kinross’s Fort Knox mill. CEO Rick Van Nieuwenhuyse highlighted the significance of this milestone for the company's shareholders and its strategic future. The Manh Choh project, now in production, forms part of Contango's broader plan to increase gold output to 200,000 ounces annually within five years. Their direct ship ore (DSO) model leverages existing processing facilities to minimize environmental impact and reduce capital requirements. Other projects, Lucky Shot and Johnson Tract, will also contribute to this growth strategy.

Contango ORE (CTGO) announced that HighGold Mining shareholders have overwhelmingly approved the arrangement with Contango, with 93.7% of shareholders and 94.4% of security holders in favor. The approval meets the necessary requirements to proceed, with final court approval expected on July 2, 2024, and the arrangement closing around July 9, 2024. The acquisition of Johnson Tract is set to boost Contango's resources significantly. Additionally, Contango recently completed a $15 million public offering. CEO Rick Van Nieuwenhuyse highlighted the strategic benefits and upcoming exploration plans to advance the Johnson Tract development.

Contango ORE (NYSE American: CTGO) announced the commencement of gold production at its Manh Choh mine, with its first gold pour set for July 8, 2024, at the Fort Knox mill facility. This milestone follows the formation of the Peak Gold joint venture with Kinross in September 2020, the completion of a feasibility study, successful permitting, and mine construction. Mining operations began in August 2023, and ore hauling started in November 2023, leading to a substantial stockpile of ore ready for processing. CEO Rick Van Nieuwenhuyse emphasized the project's high-quality deposit and exceptional grade, inviting stakeholders to virtually join the gold pour event.

Contango ORE (NYSE American: CTGO) announced the pricing of its underwritten public offering of 731,750 units at $20.50 per unit, totaling approximately $15 million in gross proceeds. Each unit includes one share of common stock and one-half of one warrant, exercisable at $26.00 per share for 36 months. The offering is expected to close around June 12, 2024, with proceeds intended for corporate purposes, including exploration of the Lucky Shot Project and HighGold's Johnson Tract. Canaccord Genuity and Cormark Securities act as joint book-runners, with Roth Capital Partners as co-manager.

Contango ORE (NYSE American: CTGO) has announced an underwritten public offering of its common stock and accompanying warrants. Shares and warrants will be sold separately but must be purchased together. The offering's timing and size remain uncertain. Proceeds will fund general corporate activities, including the exploration of the Lucky Shot Project and HighGold's Johnson Tract, anticipated to close by July 2024. Canaccord Genuity and Cormark Securities will act as joint book-runners. The offering is under an effective shelf registration filed with the SEC.

Contango (NYSE American: CTGO) announced a net loss of $20.5 million for Q1 2024, translating to a loss of $2.14 per share. This loss includes a $15.6 million non-cash expense from mark-to-market derivative contracts on forward gold prices.

The company experienced increased interest costs from its secured credit facility, partially balanced by reduced losses from its equity in the Peak Gold JV. Contango's 30% owned Manh Choh project remains on track for production in early Q3 2024, with ongoing mining and transportation activities.

Updates include a $15.5 million investment in the Peak Gold JV and an upcoming acquisition of HighGold Mining Inc. valued at $37 million, expected to close in July 2024.

Contango ORE, Inc. provided an update on its Manh Choh project, operated by Kinross Gold , with first gold production expected in early Q3 2024. Mining operations and transportation of ore are progressing well, validating Contango's business model of identifying projects with access to infrastructure, sufficient grade, and simple permitting processes.

Contango ORE, Inc. (NYSE American: CTGO) is acquiring HighGold Mining Inc. in a deal valued at approximately US$37 million, with HighGold shareholders owning 15% of the combined company. The transaction aims to create a leading Alaskan gold company with growth potential and a strong portfolio. The deal benefits Contango shareholders with the addition of the high-grade Johnson Tract Project to their portfolio, while HighGold shareholders receive an upfront premium and participation in a growth-focused gold mining company.