Contango settles milestone payments for full ownership of historic Lucky Shot prospect
TSX- and NYSE-listed Contango Silver and Gold has entered into an agreement to settle milestone payments totalling $18.7-million on the Lucky Shot project, in Alaska, in exchange for $5-million in cash and 100 000 common shares of Contango valued at $1.57-million.
Contango CEO Rick van Nieuwenhuyse says settling these milestone payments at Lucky Shot is a meaningful corporate achievement. "By eliminating our remaining payment obligations and securing 100% unencumbered control of the Lucky Shot asset, we have significantly derisked the project and ensured that our investors will realise its full upside potential."
He adds that shareholders are now well positioned to capture maximum leverage from what is shaping up to be a truly exceptional high-grade gold system, given the success and continuity from Contango's ongoing drill programmes and aggressive advancement of Lucky Shot toward the feasibility stage.
For context, Contango on June 26 amended its membership interest purchase and sale agreement with a Singapore-based private corporation called CRH Funding II to satisfy obligations totalling up to $18.7-million if certain milestones were achieved on the Lucky Shot project - which was still held by CRH.
Meanwhile, Contango advises it has received a $9-million cash distribution from the Peak Gold Joint Venture, which holds leases for exploration and development on the Manh Choh gold and silver mine, in Alaska. Contango holds a 30% stake in the joint venture.
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