HOUSTON--(BUSINESS WIRE)--Contango ORE, Inc. (“CORE” or the “Company”) (OTCQB: CTGO) announced that certain holders of outstanding warrants issued in 2013 have exercised 587,500 warrants resulting in $5.3 million in cash net to the Company (including $0.8 million exercised by entities controlled by the Company’s President, Brad Juneau). The holders of these warrants were offered a 10% discount to early exercise the warrants for cash to provide the Company with financial flexibility. In addition, in an unrelated transaction, 62,500 warrants were exercised in a cashless exercise at their original $10 exercise price, leaving 580,999 warrants of the Company outstanding.
The drilling conducted by Peak Gold, LLC, a joint venture between the Company and Royal Alaska, LLC (“Royal”), a wholly owned subsidiary of Royal Gold, Inc. managed by Royal (the “Joint Venture”) in the North Peak resource area of the Joint Venture’s gold exploration project in Tetlin, Alaska is wrapping up for the season, with 19 core holes drilled in the 2016 Phase I, 62 holes in Phase II and 37 holes in Phase III. Total meters drilled in 2016 was 20,522.8 (67,335 ft). The North Peak area remains open to expansion on the northwest and southeast portions, as the last holes drilled were still in gold bearing skarn.
The following table shows the most recent significant intercepts drilled on the project for which assay results have not been previously released and there are 9 core holes drilled for which assay results are still pending. Sample intervals are calculated using 0.5 grams per tonne (gpt) lower cut off for gold with no internal waste less than cutoff grade that is greater than 3 meters in thickness. Intercepts shown are drill intercept lengths. True width of mineralization is unknown.
The data below includes 21 new drill holes from TET16274 and TET16301 and their locations are shown on the accompanying base map:
|Zone||Drill Hole||From (meters)||To (meters)||Interval (meters)||Au_gpt||Au_gpt*m x Interval|
The Company held its annual meeting of stockholders on November 17, 2016 and the following directors were elected:
|Joseph S. Compofelice|
|Joseph G. Greenberg|
|Richard A. Shortz|
Additionally, the Company’s Board of Directors re-appointed the following officers of the Company:
|Brad Juneau||Chairman of the Board, President and Chief Executive Officer|
|Leah Gaines||Vice President, Chief Financial Officer, Chief Accounting Officer, Treasurer and Secretary|
The Company also announced that it filed its Form 10-Q for the quarter ended September 30, 2016 with the Securities and Exchange Commission.
The Company reported a net loss of $1.0 million or ($0.24) per basic and diluted share for the three months ended September 30, 2016 compared to a loss of $0.5 million or $(0.12) per basic and diluted share for the same period last year. During the three months ended September 30, 2016, $0.6 million of the net loss was attributed to non-cash expenses compared to $0.2 million for the same period last year.
Brad Juneau, the Company’s President commented, “We are pleased with the large number of warrants recently exercised, which dramatically changed the Company’s cash position, which now exceeds $6 million as of November 17, 2016. We remain encouraged by the Joint Venture’s drilling results and technical expertise provided by Royal Gold. We look forward to releasing a resource estimate of the Joint Venture’s Alaskan gold deposit in the Spring of calendar year 2017.”
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 Alaska, LLC. 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.