Contango Ore Confirms Lucky Shot Vein Continuity and KM Vein Discovery, Raises $50M
Contango Ore advanced its Alaska Lucky Shot project by confirming continuity of the historically mined vein and discovering the KM vein, with a feasibility study due H1 2027. On February 12 it raised $50 million by selling 1.67 million shares at $24.96, earmarking $45 million to repurchase gold hedge contracts.
1. Lucky Shot Drilling Advances
Contango Ore confirmed continuity of the historically mined Lucky Shot vein and discovered the new KM vein orientation during its initial underground diamond drilling program in Alaska. The phase focused on validating the geological model and will inform veins L1b and L1c as the company prepares a feasibility study due H1 2027.
2. Underwritten Offering and Hedge Strategy
On February 12 the company closed an underwritten offering of 1.67 million shares at $24.96, generating $50 million in gross proceeds. Approximately $45 million of net funds are earmarked to repurchase gold hedge contracts, while about $700,000 will purchase gold put contracts for downside protection.
3. Alaska Projects and Joint Ventures
Contango Ore holds a 30% interest in the Peak Gold Joint Venture (Manh Choh project) with Kinross Gold, which began production in 2024, and continues exploration at Lucky Shot and Johnson Tract in Alaska.