Contango ORE slides after announcing stock-and-warrants offering

HighGold Mining

11/06/2024 12:35

** Shares of Contango ORE  CTGO.N  down 21% premarket on
light volume to $19.70, nearly 1-mth low, as gold miner seeks
equity raise
    ** Fairbanks, Alaska based co late Mon announced stock and
accompanying warrants with Canaccord and Cormark Secs as jt
bookrunners
    ** Offering size not disclosed 
    ** Co said plans to use net offering proceeds for general
purposes, including continued exploration of the Lucky Shot
Project and exploration of HighGold’s Johnson Tract, part of
HighGold acquisition it anticipates closing by July 2024
    ** In early May, Contango said it would buy Canada's
Highgold Mining  HIGH.V  in deal valued at approx $37 mln (C$51
mln)
    ** Contango has ~9.6 mln shares outstanding for $240 mln
market cap, and ~5.6 mln shares of free float, per LSEG data
    ** CTGO is very thinly traded. Stock's 50-DMA volume is
around 50k
    ** YTD, stock up 38% through Mon

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))