Contango Announces $19.5 Million Cash Distribution Received from the Peak Gold JV

Rhea-AI Summary

Contango ORE (NYSE American: CTGO) has announced a significant cash distribution of $19.5 million from the Peak Gold JV, representing Contango's 30% share of profits from Campaign #1 ore processing at Manh Choh. The Peak Gold JV plans two additional campaigns in 2024, with the second already in progress. Contango anticipates at least one more cash distribution before year-end. The company projects its 2024 gold production share from the Peak Gold JV to range between 30,000 and 40,000 ounces. This distribution marks a notable milestone for Contango, demonstrating the project's ability to generate substantial cash flow and potentially signaling positive future returns for shareholders.

Positive

• Received $19.5 million cash distribution from Peak Gold JV
• Two additional campaigns planned for 2024, with one already underway
• Estimated gold production share of 30,000-40,000 ounces for 2024
• At least one more cash distribution expected before year-end

Negative

• None.

FAIRBANKS, Alaska, Sept. 17, 2024 /PRNewswire/ - Contango ORE, Inc. ("Contango" or the "Company") (NYSE American: CTGO) is pleased to announce that the Peak Gold JV paid a cash distribution of $19.5 million. These proceeds relate to Contango's 30% of profits from the processing Manh Choh ore from Campaign #1. The Peak Gold JV is planning two further campaigns in 2024, the second currently underway, with at least one more cash distribution expected to occur before the end of the year. Contango estimates its share of gold production from the Peak Gold JV for 2024 to be between 30,000 and 40,000 ounces of gold.

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, operator of the Peak Gold JV. The Company also has a lease on the Johnson Tract project from the underlying owner, CIRI Native Corporation, a lease on Lucky Shot project from the underlying owner, Alaska Hardrock Inc. and, through its subsidiary, 100% ownership of approximately 8,600 acres of peripheral State of Alaska mining claims.  In addition, 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 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 amount of cash distribution Contango (CTGO) received from Peak Gold JV?

Contango (CTGO) received a cash distribution of $19.5 million from the Peak Gold JV.

How many campaigns is Peak Gold JV planning for 2024?

Peak Gold JV is planning three campaigns in total for 2024, with the second campaign currently underway.

What is Contango's (CTGO) estimated gold production share from Peak Gold JV for 2024?

Contango (CTGO) estimates its share of gold production from the Peak Gold JV for 2024 to be between 30,000 and 40,000 ounces of gold.

Will Contango (CTGO) receive additional cash distributions from Peak Gold JV in 2024?

Yes, Contango (CTGO) expects at least one more cash distribution from Peak Gold JV before the end of 2024.