(TheNewswire)
Vancouver, B.C. - TheNewswire - (April 27, 2023) – Contact Gold Corp. (the “Company” or “Contact Gold”) (TSXV:C ) ; ( OTC:CGOLF) announces that Waterton Precious Metals Fund II Cayman, LP (“Waterton”) has informed the Company that it has sold its entire equity position in Contact Gold in a block trade (the “Block Sale”) through the facilities of the Pure Trading alternative trading system on April 26, 2023.
The Contact Gold common shares sold by Waterton were acquired by a number of purchasers, including certain insiders of the Company alongside experienced precious metals investors. The aggregate value of the Block Sale was $1,511,469, or $0.015 per common share.
As a result of the Block Sale, directors and management now hold 10.1% of the common shares in aggregate.
Waterton was a major shareholder of Contact Gold dating back to the Company’s acquisition of the Pony Creek gold project prior to going public in June of 2017. Immediately prior to the Block Sale, Waterton owned 100,764,627 common shares of Contact Gold, representing approximately 28.66% of the Company.
“Waterton was one of the original institutional shareholders in Contact Gold. As a private equity fund with investment and divestment parameters, the timing of the sale was beneficial to both Waterton and the Company. We believe that the Block Sale will allow for increased trading liquidity, and open up new strategic opportunities. Further, the acquisition of Contact Gold shares by new and existing shareholders is a strong vote of confidence in the Company and a testament to its compelling valuation.” said Matt Lennox-King, President and CEO of Contact Gold.
“We are excited to welcome our new shareholders and thank Waterton for their support over the years. Next up for Contact Gold is the resumption of drilling in June at our Green Springs oxide gold project, where Centerra Gold is funding a US$1.85 million 2023 exploration program as part of a US$10 million earn-in signed in December 2022. We look forward to resuming drilling at Green Springs to follow up on the high-grade intercepts from our last exploration programs.”
Waterton will be filing an early warning report under National Instrument 62-103 – The Early Warning System in connection with the sale of the Contact Gold shares, a copy of which will be available under the Company’s profile on SEDAR at www.sedar.com . As a result of the Block Sale, and Waterton no longer holding any Contact Gold common shares, Waterton will no longer file insider or early warning reports in respect of its ownership of securities of Contact Gold, except as required by applicable law.
Waterton’s address is c/o Waterton Global Resource Management Inc., Commerce Court West, 199 Bay Street, Suite 5050, Toronto ON, M5L 1E2. Contact Richard Wells, Partner, Chief Financial Officer of Waterton Global Resource Management at (416) 504-3507 for further information.
Contact Gold’s address is 400 Burrard Street, Suite 1050, Vancouver BC, V6C 3A6. Contact John Wenger, Chief Financial Officer of Contact Gold at (604) 426-1295 for further information.
About Contact Gold Corp.
Contact Gold is an exploration company focused on making district scale gold discoveries in Nevada. The Company’s extensive land holdings are on the prolific Carlin and Cortez gold trends, which host numerous gold deposits and mines. Contact Gold’s land position comprises approximately 144 km 2 of target-rich mineral tenure hosting numerous known gold occurrences, ranging from early- to advanced-exploration and current gold resources. The Company’s 100% owned Pony Creek project is located immediately south of Orla Mining Ltd.’s feasibility-stage South Railroad Project, on the Southern Carlin Trend (TSX: OLA). The Company published a first-time mineral resource estimate at Pony Creek in early 2022. Exploration at the Company’s Green Springs project is being funded through a partnership with Centerra Gold Inc. pursuant to an earn-in arrangement.
Additional information about the Company is available at www.contactgold.com .
For more information, please contact: +1 (604) 449-3361
Matthew Lennox-King – President & CEO
E-mail: info@ContactGold.com