Contango ORE Announces Year End Results
14 September 2023 - 6:57AM
Business Wire
Contango ORE, Inc. (“Contango” or the “Company”) (NYSE American:
CTGO) announced today it filed its Form 10-K for the year ended
June 30, 2023 with the Securities and Exchange Commission.
The Company reported a net loss of $39.7 million or a loss of
$5.61 per basic and diluted share for the year ended June 30, 2023
compared to a net loss of $23.5 million or a loss of $3.49 per
basic and diluted share for the prior year. The primary reason for
the increase in net loss in 2023 is due to an increase in
pre-production costs for development and construction at the
Company’s 30% interest in the Manh Choh mine, which is being
operated by Kinross Gold Corporation (‘Kinross”).
During the year ended June 30, 2023, the Company completed the
following:
- Entered into a Credit and Guaranty Agreement with ING Capital
LLC and Macquarie Bank Limited for a senior secured loan facility
of up to $70 million, of which $65 million is committed and subject
to certain conditions, to fund its portion of the pre-production
construction and working capital/operating expenditures for the
Manh Choh mine in Alaska ("Manh Choh"), which is owned and operated
by Peak Gold, LLC (the “Peak Gold JV”);
- The Company contributed $21.1 million to the Peak Gold JV for
expenditures at the Manh Choh mine. The Manh Choh mine celebrated
the commencement of mining operations with a ground-breaking
ceremony on August 29, 2023. Construction to date remains on
schedule and on budget with production anticipated by the second
half of 2024;
- The Company completed an exploration program at the Lucky Shot
project, drilling 29 exploration holes on the property, with all 29
holes intersecting the Lucky Shot vein structure. Subsequent to
year end, in August 2023, the Company commenced on a surface
drilling program on the Coleman segment of the Lucky Shot
vein;
- The Company completed an SK-1300 Technical Report Summary for
the Manh Choh project and issued an initial S-K 1300 Resource
Technical Report Summary for the Lucky Shot project;
- The Company raised net proceeds of $18 million from the
issuance of shares and the exercise of warrants; and
- Subsequent to year end, on July 26, 2023, the Company closed an
underwritten public offering for gross proceeds of $30.4
million.
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 an
indirect subsidiary of Kinross, operator of the Peak Gold JV. The
Company also has a lease on the Lucky Shot project from the
underlying owner, Alaska Hardrock Inc. and through its subsidiary
has 100% ownership of approximately 8,600 acres of peripheral State
of Alaska mining claims. Contango also owns a 100% interest in an
additional approximately 145,000 acres of State of Alaska mining
claims through its wholly owned subsidiary, which gives 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, 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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version on businesswire.com: https://www.businesswire.com/news/home/20230912583353/en/
Contango ORE, Inc. Rick Van Nieuwenhuyse (713) 877-1311
www.contangoore.com
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