Alaska Future Fund Invests $10 Million in Private Placement in Contango ORE
Posted on 06/28/2021
Contango ORE engages in exploration in Alaska for gold and associated minerals through a 30% interest in Peak Gold, LLC, which leases approximately 675,000 acres from the Tetlin Alaska Native Tribe for exploration and development, and through Contango Minerals Alaska, LLC, its wholly owned subsidiary, which holds exploration and development rights in approximately 220,000 acres. The people of Tetlin are Upper Tanana Athabascans with approximately 400 members. The Village of Tetlin consists of 97.4% Alaska Native or part Native.
Contango ORE, Inc. sold 523,809 shares of its Common Stock, par value US$0.01 per share, at a price of US$21 per share in a private placement to a strategic investor, the Alaska Future Fund (AFF), and to Rick Van Nieuwenhuyse, the Contango ORE’s President and Chief Executive Officer. Contango ORE will use the net proceeds of approximately US$ 10.9 million ($10 million from AFF, $1 million from Mr. Van Nieuwenhuyse and $0.1 million in expenses) from this offering to fund its proportionate share of the future exploration and development programs for Peak Gold, LLC, Contango ORE’s joint venture with a subsidiary of Kinross Gold Corporation, for both exploring its properties and for general corporate purposes.
The Alaska Future Fund is managed by Barings, a US$ 325 billion financial services company that is owned by Massachusetts Mutual Life Insurance Company. In October 2019, the The Alaska Permanent Fund Corporation committed US$ 100 million to the Alaska Future Fund which seeks to identify and support private funds and private market businesses/projects that are either based in Alaska, have investment operations in Alaska or have a current bona fide plan to operate in Alaska. The Alaska Future Fund will invest in businesses and projects that support core sectors of the Alaskan economy, including, but not limited to, real assets, natural resources, transportation and infrastructure, to grow the Alaskan economy and foster the next generation of private market opportunities in the state of Alaska.
Contango ORE reported that Peak Gold, LLC’s Manh Choh project remains on plan and on budget for the $18 million 2021 program with all in-fill drilling, along with metallurgical and geotechnical drilling now completed.