Contango ore closes $50 million public offering for mining projects

FAIRBANKS, Alaska - Contango ORE, Inc. (NYSE American:CTGO), whose stock has surged 142% over the past six months according to InvestingPro data, announced Friday it has closed a $50 million underwritten public offering consisting of 1,975,000 common shares at $20.00 per share to two institutional investors.

The offering also included a pre-funded warrant to purchase 525,000 shares at $19.99 per share. Canaccord Genuity served as Sole Bookrunner, with Cormark Securities as Lead Manager and Maxim Group LLC, Roth Capital Partners, and Freedom Capital Markets as Co-Managers.

According to the company’s press release, proceeds will fund the advancement of Contango’s fully permitted Lucky Shot project toward a mine production decision over the next two years. This will include completing underground and surface-based drilling and development work.

Funds will also support the Johnson Tract project, pending appropriate permits, by enabling road construction to the planned portal, winterizing the camp for year-round operations, starting construction of an exploration tunnel for advanced drilling, and completing a feasibility-level mine plan.

Contango holds a 30% interest in Peak Gold, LLC, which leases approximately 675,000 acres for exploration and development on the Manh Choh project. The remaining 70% is owned by KG Mining (Alaska), Inc., an indirect subsidiary of Kinross Gold Corporation.

The company also maintains leases on the Johnson Tract and Lucky Shot projects, along with ownership of approximately 153,600 acres of State of Alaska mining claims.

The offering was made pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission.

In other recent news, Contango Ore, Inc. has announced a significant financial turnaround for the second quarter of 2025, reporting operating earnings of $23 million. This is a notable improvement from a $3.1 million loss in the same period last year. The company’s net income also rose to $16 million, compared to an $18.5 million net loss in Q2 2024. However, the earnings per share (EPS) of $1.24 did not meet analysts’ expectations, who had projected a loss of $0.0367 per share. In another development, Contango Ore priced its underwritten public offering of 1,975,000 common shares at $20 per share, aiming to raise approximately $50 million in gross proceeds. This offering also included a pre-funded warrant to purchase 525,000 shares at $19.99 per share. The recent financial results and public offering are part of the company’s ongoing efforts to strengthen its financial position.

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