On May 2, 2024, Contango ORE, Inc. (NYSE American: CTGO) acquired HighGold Mining Inc. (TSXV: HIGH, OTCQX: HGMIF) in a transaction valued at approximately $37 million CAD (C$51 million). Under the agreement, each HighGold share was exchanged for 0.019 shares of Contango common stock, representing a 59% premium based on a 20-day volume-weighted average price. The deal, structured as a court-approved plan of arrangement under the Business Corporations Act (British Columbia), resulted in Contango shareholders owning 85% and HighGold shareholders owning 15% of the combined company.

This acquisition positions Contango as a leading Alaskan gold company with increased financial flexibility and enhanced project portfolio. It adds HighGold’s Johnson Tract Project, expanding Contango’s resources threefold. The transaction was approved by the boards of both companies, with fairness opinions provided by Agentis Capital Mining Partners and Evans & Evans, Inc.

Legal advisors for Contango included Blake, Cassels & Graydon LLP and Holland & Knight LLP, while HighGold was advised by DuMoulin Black LLP. Financial advisors were Cormark Securities Inc. for Contango and Agentis Capital Mining Partners for HighGold. The deal is expected to close in July 2024, pending regulatory and shareholder approvals.

The combined entity aims to leverage synergies and financial strength to advance gold production, targeting over 150,000 ounces annually, with an emphasis on sustainable and low-risk mining practices.