Contango ORE, Inc. Announces Private Placement of Common Stock and Year-End Update

Contango ORE, Inc. announced today the issuance and sale of an aggregate of 283,500 shares for $20.00 per share of the Company's common stock, par value $0.01 per share , and warrants ... | December…

Contango ORE, Inc. Announces Private Placement of Common Stock and Year-End Update

Contango ORE, Inc., ('CORE’ or the Company’) (NYSE American: CTGO), announced today that it issued and sold 283,500 shares at $20.00 each (the?Shares) of its common stock, par value $0.01 (the?Common Stock) and warrants (the _Warrants) allowing each purchaser to purchase Common Stock for $25.00 per Share (the &Warrant Shares) and together with the Common Stock, the Warrants, and the, the, as ', the ') pursuant (the ) dated December 23, 2022 (the ) and some accredited investors (the referred to the ' The Subscription Agreements contain customary representations, warranties and covenants between the Company and certain accredited investors (the 'Purchasers').

The net proceeds were approximately $5.6million. The Company plans to use the net proceeds of the Private Placement for its exploration and development program as well as general corporate purposes. Although the Securities were not registered under Securities Act of 1933 as amended, the Common Stock and shares of Common Stock that were issued following exercise of Warrants are subjected to a Registration Rights Agreement, which allows holders to register the shares at a later date. Petrie Partners Securities, LLC was the sole placement agent for a portion of this transaction.

Rick Van Nieuwenhuyse, Chief Executive Officer and President of the Company, stated that this equity capital raise would allow us to continue our 30% interest in Peak Gold, LLC (PGJV), while we arrange debt financing for the balance funds required to put the Manh Choh project into operation. Kinross, who is the operator, manager and 70% owner in the PGJV, has informed us at our last joint venture meeting, that the project is on time and within budget. Construction work on the Manh Choh site will continue throughout the winter months to finish the Camp facilities in Tok, Alaska. This will ensure that the project is on track for the first gold production in 2024's second half. I am happy to report that the project has reached 50% and is on track to be completed. Major contracts are being negotiated for contract mining, and the contract ore hauling segment of the project. Together they account for over half of the operating and development costs. Since Contango first discovered the high-quality ore deposits in 2011, we have been working closely with the Tetlin Tribal Council, and most recently with Kinross to bring the project into production. We are thrilled to see this project succeed. We are making progress, despite the current inflationary environment and difficult market conditions. According to a Kinross1 feasibility study, the Manh Choh project will produce approximately 225,000 ounces per year (67.500 for CTGO's 30 percent interest). Once the final Toll Milling Agreement between Kinross Fort Knox and the Company is signed, the Company will prepare a SK 1300 compliant technical document.

In the meantime, 29 exploratory drill holes have been completed. We are now ready for winter and have stopped drilling exploration on our Lucky Shot project. The Lucky Shot vein structure was intersected by all 29 of the holes. A third-party structural geologist from Oriented Targeted Solutions Inc. was hired to conduct a structural analysis on the vein structure based upon underground mapping and drill core logging. We will receive all the assays from this year's exploration efforts by January. Then, we will complete a SK1300 Resources Estimate Technical Report by calendar Q1 2023. We look forward continuing to update shareholders and investors about our progress at Lucky Shot and Manh Choh projects. Management believes 2023 will mark a pivotal year for the company, with mining activities starting at Manh Choh as well as an initial resource estimate at Lucky Shot.

1 Based on Kinross Gold Corporation's Q2 Corporate Update presentation dated July 27, 2022. Initial capex reflects Kinross' feasibility study in 2022. The optimization of the mineral reserve estimate assumed that the price for gold was $1,300. The $182 million capital expenditure estimate is based on the remaining funds that will be spent between 2022-2024. Fort Knox will need additional capital to process Manh Choh Ore. This will be reflected by a Toll Milling fee to PGJV. The non-GAAP ratio is the 'All-in sustain cost (AISC), per equivalent ounce of sold'. For disclaimers about reconciliation, see Appendix. "GEO" refers to Gold Equivalent Ounces.


CORE is a company that explores Alaska for gold and related minerals. It holds a 30% stake in PGJV, which leased approximately 675,000 acres to exploration and development, as well as through Contango Minerals Alaska, LLC, which leased approximately 137,000 acres to exploration. The rights to Lucky Shot, Coleman, and War Baby mines as well as approximately 16,600 acres of adjacent mining claims in Willow Mining District, Alaska, are also owned by the Company. This district is located 75 miles north from Anchorage. You can find additional information on our website at URL.


Forward-looking statements concerning CORE are included in this press release. They are intended to be protected by the Safe Harbor for Forward-Looking Statements' provided by the Private Securities Litigation Reform Act of 95. These statements are based on CORE’s current expectations. They include statements regarding future operations, quality and the nature of the asset base and the assumptions upon which estimates are made. Also, statements regarding CORE's future results of operations, future results of operations, future performance, and any other expectations, beliefs and stating that some actions, results will, could, should' or that certain events, are expected to occur, are possible, or that certain actions, results, are expected, or that ad be taken, Forward-looking statements are based upon current expectations, projections, and projections. Actual results could differ materially from the statements. These risks include but aren't limited to: risks associated with the exploration and mining industry (for instance, operational risks in developing and exploring mineral reserves; risks and uncertainty involving geology; uncertainties relating to future production costs and expenses; uncertainties regarding estimates and projections relating the future production, costs, and expenses; the ability to realize the expected benefits of recent transactions with an associate of Kinross; disruptions from transactions and transition of PGJV’s management to an affiliated of Kinross; uncertainties about the availability and cost of funding; inability of mining permits; and may delay or not get governmental approvals. CORE's other reports filed with the U.S. Securities and Exchange Commission contain additional information about these and other factors that could impact CORE’s exploration program and financial results. Forward-looking statements do not guarantee future performance. Actual results and developments could differ materially from those projected in forward-looking statements. Investors should be aware that forward-looking statements cannot be guaranteed. Forward-looking statements are based upon the opinions and estimates of management at the time they are made. URL