HOUSTON--(BUSINESS WIRE)--Contango ORE, Inc. (“CORE” or the “Company”) (OTCQB: CTGO) announced today that it filed its Form 10-K for the year ended June 30, 2015 with the Securities and Exchange Commission.
The Company reported a net loss of $3.6 million or $0.94 per basic and diluted share for the year ended June 30, 2015 compared to a loss of $9.2 million or $2.43 per basic and diluted share for the same period last year. The Company also reported that it determined to account for its ownership of its joint venture company, Peak Gold, LLC, on the equity method and made the determination to restate its results for the three and nine month periods ended March 31, 2015 contained in the Company’s Quarterly Report on Form 10-Q by filing an amendment to the original filing.
While the Company substantially reduced its net loss in 2015 as compared to 2014 because the Company did not carry out an exploration program in 2014, the Company incurred greater legal and professional expenses in 2015 related to the formation and stockholder approval in early January 2015 of a joint venture, Peak Gold, LLC, with Royal Alaska, LLC, ("Royal Alaska"), a wholly-owned subsidiary of Royal Gold, Inc., for the exploration and development of its Peak zone gold ore discovery as well as other newly discovered gold bearing areas on its Tetlin properties near Tok, Alaska.
In August 2015, the Management Committee of Peak Gold, LLC, approved a budget of approximately $4 million for Phase II exploration work, which will be funded by Royal Alaska following Royal Alaska's initial contribution of $5 million. Royal Alaska may earn up to 8% economic ownership of the joint venture by contributing $9 million and a 40% economic ownership by contributing $30 million to the joint venture company. Brad Juneau, President and CEO of the Company, commented, “Phase II of our Joint Venture’s 2015 exploration program is well underway, and we expect to receive final assay data from Phase II core holes drilled by year end. The Company’s Form 10-K for the year ended June 30, 2015 contains the significant intercepts from Phase I as well as base maps showing their locations.”
CORE is a Houston-based company that engages in the exploration in Alaska for gold and associated minerals through Peak Gold, LLC, its joint venture company with Royal Gold, Inc. Additional information can be found on our web page at www.contangoore.com.
This press release contains forward-looking statements regarding CORE that are intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, based on CORE’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 CORE; 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; inability to realize expected value from acquisitions; inability of our management team to execute its plans to meet its goals; and the possibility that government policies may change or governmental approvals may be delayed or withheld, including the inability to obtain any mining permits. Additional information on these and other factors which could affect CORE’s exploration program or financial results are included in CORE’s other reports on file with the 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. CORE does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change.