CTGO Gains 5.35% to $24.02 and New All-Time Highs Coming Soon
Contango ORE (CTGO) gained by 5.35% today to $24.02 per share and new 52-week highs of above $26.88 per share are coming followed by new all-time highs of above $33.67 per share.
One year from now compare the trailing twelve-month performance of Contango ORE (CTGO) vs. all producing gold miners and look at what company is #1.
Here are the terms of CTGO’s 2021 purchase agreement of Lucky Shot:
CTGO paid an initial $5 million in cash plus a $6.25 million promissory note which it has already paid off in cash = $11.25 million.
Importantly, there are some future milestone payments:
Contingent milestone payments (performance-based)
There are two potential milestone tiers tied to gold resource or production thresholds:
| Milestone | Trigger (either/or) | Cash Payment | Shares Payment | Total Value (nominal) |
|---|---|---|---|---|
| Milestone 1 | ≥ 500,000 oz gold resource OR 30,000 oz cumulative gold production (Ag counted 65:1) | US $5 million | US $3.75 million (in CTGO shares, based on 30-day VWAP) | US $8.75 million |
| Milestone 2 | ≥ 1,000,000 oz gold resource OR 60,000 oz cumulative gold production (Ag counted 65:1) | US $5 million | US $5 million (in CTGO shares, based on 30-day VWAP) | US $10 million |
| Subtotal (if both achieved) | US $18.75 million |
What we would do is perfectly define a 495,000 oz gold resource this winter and pay the $18.75 million in future milestones out of Lucky Shot’s future production because by then CTGO’s market cap will be at least $1–$2 billion.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA has received compensation from CTGO of US$80,000 cash for ten months of coverage. NIA’s President has purchased 2,000 shares of CTGO in the open market and intends to buy more shares. This message is for informational and educational purposes only and does not provide investment advice.
