Contango ORE Announces Underwritten Public Offering Of Common Stock; No Size Disclosed
Portfolio Pulse from Happy Mohamed
Contango ORE, Inc. (NYSE:CTGO) has announced an underwritten public offering of its common stock. The size of the offering has not been disclosed. The company plans to use the proceeds to fund its contribution obligations to the Peak Gold JV for the Manh Choh project, continue exploration drilling at its Lucky Shot project, and fund working capital requirements. Maxim Group LLC and Freedom Capital Markets are acting as joint book-runners for the offering.
July 21, 2023 | 8:02 pm
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Contango ORE's announcement of a public offering could dilute existing shares, potentially leading to a short-term decrease in stock price. However, the funds raised will be used for strategic projects, which could have positive long-term effects.
Public offerings often lead to share dilution, which can decrease the stock price in the short term. However, the funds raised will be used for strategic projects, which could increase the company's value in the long term.
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