Contango Ore prices $50 million public offering at $20 per share

FAIRBANKS, Alaska - Contango Ore, Inc. (NYSE American:CTGO), currently trading near its 52-week high of $25.2 with a market capitalization of $302 million, has priced its underwritten public offering of 1,975,000 common shares at $20.00 per share to two institutional investors, the company announced Thursday.

The gold exploration company also offered a pre-funded warrant to purchase 525,000 shares at $19.99 per share, with a $0.01 exercise price per share. The offering is expected to generate approximately $50 million in gross proceeds before deducting underwriting discounts, commissions and other expenses. According to InvestingPro data, the stock has shown remarkable momentum with a 152% return over the past six months, though current valuations suggest the stock may be trading above its Fair Value.

Contango plans to use the proceeds to fund advancement of its fully permitted Lucky Shot project toward a mine production decision over the next two years by completing underground and surface-based drilling and development work. Funds will also support the company’s Johnson Tract project, including road construction, camp winterization, and exploration tunnel construction, subject to permit approvals. While the company is not currently profitable, with a loss per share of $0.47 over the last twelve months, InvestingPro analysts forecast earnings of $2.00 per share for fiscal year 2025. Get access to 12 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Canaccord Genuity is serving as Sole Bookrunner for the offering, with Cormark Securities as Lead Manager. Maxim Group LLC, Roth Capital Partners, and Freedom Capital Markets are acting as Co-Managers.

The offering, made pursuant to an effective shelf registration statement on Form S-3, is expected to close on or about September 26, 2025, subject to customary closing conditions.

Contango Ore engages in gold exploration in Alaska and 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. Discover detailed financial metrics and in-depth analysis in the comprehensive Pro Research Report, available exclusively on InvestingPro.

The information in this article is based on a company press release statement.

In other recent news, Contango ORE Inc. reported a notable improvement in its financial results for the second quarter of 2025. The company achieved operating earnings of $23 million, a significant turnaround from a $3.1 million loss in the same period last year. Net income reached $16 million, contrasting sharply with the $18.5 million net loss recorded in the second quarter of 2024. However, despite this positive performance, Contango ORE’s earnings per share (EPS) of $1.24 did not meet analysts’ expectations, which had anticipated a loss of $0.0367 per share. This resulted in an earnings surprise of -3478.75%. These recent developments highlight the company’s financial recovery, although the EPS fell short of projections. The company’s stock price experienced fluctuations following the earnings release, but no specific stock price movements are detailed here.

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