The settlement agreement with CRH Funding II PTE. Ltd. requires Contango to pay $5 million in cash alongside the issuance of 100,000 common shares. Valued at approximately $6.57 million based on the June 26 closing price, the deal grants the company full, unencumbered control of the Lucky Shot asset. CEO Rick Van Nieuwenhuyse stated that eliminating these obligations de-risks the project as the company pushes toward the feasibility stage.
Contango Clears Lucky Shot Debt and Secures $9 Million Peak Gold Payout
Contango Silver and Gold has restructured its financial obligations at the Lucky Shot project, settling $18.75 million in future milestone payments for a fraction of that cost. The move coincides with a $9 million cash infusion from the Manh Choh mine, strengthening the company’s balance sheet.
Simultaneously, the company’s cash position received a boost on June 25 from a $9 million distribution via the Peak Gold joint venture. This payment stems from the second production campaign of 2026 at the Manh Choh mine in Alaska. Contango holds a 30% interest in the joint venture, with the remaining stake held by a subsidiary of Kinross Gold Corporation.
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