Contango ORE, Inc. (OTCQB:CTGO) (the “Company” or “CORE”) announced
today that it completed the formation of a joint venture with Royal
Alaska, LLC, a wholly-owned subsidiary of Royal Gold, Inc. (together,
“Royal Gold”) to advance exploration and development on the Tetlin
properties in Alaska.
The Company entered into a Master Agreement with Royal Gold last
September that provided for the contribution by the Company to the joint
venture of the Tetlin lease and State of Alaska mining claims near Tok,
Alaska prospective for gold and associated minerals, together with other
personal property, which are collectively valued at $45.7 million by the
joint venture.
Following stockholder approval of the transaction at the annual meeting
of CORE held today, and pursuant to the Master Agreement, the parties
formed Peak Gold, LLC, a limited liability company, to hold the joint
venture assets. The joint venture will be managed by a Management
Committee consisting of representatives of Royal Gold and the Company.
Royal Gold’s initial investment of $5 million will fund exploration
activity, and Royal Gold will have the option to earn up to a 40%
economic interest in the joint venture by investing up to $30 million
(inclusive of the initial $5 million investment) prior to October 2018.
The proceeds of Royal Gold’s investment will be used by the joint
venture for additional exploration and development of the Tetlin
properties.
Brad Juneau, President and CEO of the Company, said, “We are excited
that Royal Gold has agreed to join our effort to expand upon the
promising exploration work we have initiated on the Tetlin lease and
neighboring claims covering over 750,000 acres. Royal Gold has
demonstrated experience and expertise that will be invaluable in
expanding upon our Chief Danny Prospect, including the previously
announced Peak Zone discovery.”
Tony Jensen, President and CEO of Royal Gold, Inc., added: “We are
privileged to have the opportunity to work with the Tetlin community and
CORE on this property. The exploration success CORE has achieved to date
is encouraging and we look forward to providing the resources to
continue developing the project in a methodical and success-based
manner. Our plans are being formulated for an active exploration program
to be conducted this summer.”
About CORE
CORE is a Houston-based company that engages in the exploration in
Alaska for gold and associated minerals. Additional information can be
found on our web page at www.contangoore.com.
About Royal Gold
Royal Gold, Inc., together with its subsidiaries, is engaged in the
business of acquiring and managing precious metal royalties, metal
streams and similar interests. As of December 31, 2014, Royal Gold’s
portfolio consisted of 198 properties on six continents, including
interests on 37 producing mines and 24 development stage projects. Royal
Gold is publicly traded on the NASDAQ Global Select Market under the
symbol “RGLD,” and on the Toronto Stock Exchange under the symbol “RGL.”
Royal Gold’s website is located at www.royalgold.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding CORE
that are intended to be covered by the safe harbor "forward-looking
statements" provided by the Private Securities Litigation Reform Act of
1995, based on CORE’s current expectations and includes statements
regarding future results of operations, quality and nature of the asset
base, the assumptions upon which estimates are based and other
expectations, beliefs, plans, objectives, assumptions, strategies or
statements about future events or performance (often, but not always,
using words such as "expects", “projects”, "anticipates", "plans",
"estimates", "potential", "possible", "probable", or "intends", or
stating that certain actions, events or results "may", "will", "should",
or "could" be taken, occur or be achieved). Forward-looking statements
are based on current expectations, estimates and projections that
involve a number of risks and uncertainties, which could cause actual
results to differ materially from those, reflected in the statements.
These risks include, but are not limited to: the risks of the
exploration and the mining industry (for example, operational risks in
exploring for, developing mineral reserves; risks and uncertainties
involving geology; the speculative nature of the mining industry; the
uncertainty of estimates and projections relating to future production,
costs and expenses; the volatility of natural resources prices,
including prices of gold and associated minerals; the existence and
extent of commercially exploitable minerals in properties acquired by
CORE; potential delays or changes in plans with respect to exploration
or development projects or capital expenditures; the interpretation of
exploration results and the estimation of mineral resources; the loss of
key employees or consultants; health, safety and environmental risks and
risks related to weather and other natural disasters); uncertainties as
to the availability and cost of financing; inability to realize expected
value from acquisitions; inability of our management team to execute its
plans to meet its goals; and the possibility that government policies
may change or governmental approvals may be delayed or withheld,
including the inability to obtain any mining permits. Additional
information on these and other factors which could affect CORE’s
exploration program or financial results are included in CORE’s other
reports on file with the Securities and Exchange Commission. Investors
are cautioned that any forward-looking statements are not guarantees of
future performance and actual results or developments may differ
materially from the projections in the forward-looking statements.
Forward-looking statements are based on the estimates and opinions of
management at the time the statements are made. CORE does not assume any
obligation to update forward-looking statements should circumstances or
management's estimates or opinions change.
Copyright Business Wire 2015