Contango ORE, Inc. (NYSE: CTGO) shares were in minus territory Wednesday, as the company completed its acquisition of Canadian-based HighGold by way of a court approved plan of arrangement under the Business Corporations Act (British Columbia) The Acquisition was overwhelmingly approved by HighGold securityholders in accordance with the requirements of the BCBCA at a special meeting of HighGold securityholders held on June 27, and was subsequently approved by the Supreme Court of British Columbia on July 2.
Rick Van Nieuwenhuyse, CEO and President for Contango commented: “With the Manh Choh project now in production, the Lucky Shot and Johnson Tract projects provide a solid portfolio for growing gold production using our unique Direct Ship Ore model. Our five-year plan is to grow production from our existing projects to 200,000 ounces of annual gold equivalent production.
“By developing high-grade, high-quality mines that can utilize the DSO model by transporting our ore to existing and permitted operating processing facilities, we will reduce our environmental footprint and thereby lower our permitting risk, as well as lower the overall capital requirements to achieve commercial production. We believe this is a unique model and a right-fit for these continuing challenging capital markets for miners.”
CTGO shares let go of 28 cents, or 1.4%, to $19.39.
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