AcquisitionsMay 8, 2026, 04:37 PM
Contango Acquires Lucky Shot Project for $16.07M; Terminates 2% Royalty
AI Summary
Contango ORE, Inc., through its subsidiary, acquired 100% ownership of the Lucky Shot project in Alaska from Alaska Hardrock Inc. for $16,074,000. The acquisition includes real property, mining claims, and equipment, and effectively terminates a 2% net smelter returns royalty, enhancing project economics. Concurrently, the company announced successful high-grade drill results from the initial phase of its 2025/2026 underground diamond drilling program at Lucky Shot, with plans for an additional 800 meters of underground development to support future drilling and a feasibility study by H1 2027.
Key Highlights
- Acquired 100% ownership of Lucky Shot project for $16,074,000.
- Consideration includes $300,000 cash deposit, $1,709,250 cash on signing, $4,064,750 cash at closing.
- Issued a $10,000,000 promissory note at 5% annual interest, secured by acquired assets.
- Effectively terminated a 2% net smelter returns royalty (NSR Royalty) on the project.
- Reported high-grade drill results, including 0.50m averaging 74.20 g/t Au and 0.30m averaging 55.45 g/t Au.
- Completed 6,020 meters in 65 HQ diamond drill holes in the initial phase.
- Planned 800 linear meters of underground excavation to commence mid-May 2026.
- Targeting a mineral resource update and feasibility study for H1 2027.