Contango Ore Raises $50M, Plans $45M Hedge Buyback and $700K Put Protection
Contango Ore raised approximately $50 million through the sale of 1,678,206 common shares at $24.96 and 325,000 pre-funded warrants at $24.95. It intends to deploy about $45 million to repurchase gold hedge contracts, $700,000 to acquire gold put contracts for downside protection and the remainder for general corporate purposes.
1. Offering Structure
Contango Ore completed an underwritten offering of 1,678,206 common shares at $24.96 per share alongside pre-funded warrants for 325,000 shares at $24.95 each, generating aggregate gross proceeds of about $50 million before expenses.
2. Use of Proceeds
Approximately $45 million of net proceeds will be allocated to repurchasing existing gold hedge contracts, $700,000 to securing gold put contracts for downside protection, and any remaining funds will support general corporate needs and working capital.
3. Underwriting and Registration
Canaccord Genuity acted as sole bookrunner, with National Bank of Canada Capital Markets, ATB Cormark Capital Markets and Cantor as co-managers. The offering was conducted under an effective shelf registration statement on Form S-3 declared effective November 27, 2024.