Contango ORE, Inc. has announced an agreement to acquire HighGold Mining Inc. in an equity deal estimated at $37 million, aiming to expand its portfolio of top-quality gold mines in Alaska. The transaction, which involves the exchange of Contango shares for HighGold shares, gives the latter’s shareholders a 59% premium, merging three high-grade gold deposits under one roof. Contango President and CEO Rick Van Nieuwenhuyse emphasized that the union creates substantial strategic value for shareholders of both companies and enables a robust platform for future growth. The merger, expected to be completed in July pending regulatory and shareholder approvals, will incorporate the Johnson Tract project—a once-overlooked polymetallic gold venture—into Contango’s distinctive DSO business model. This model focuses on assets that 1) are near existing or potential infrastructure, 2) have a high enough grade to transport ore directly to third-party processing facilities, and 3) consist of a permitting-friendly simple ore body, thereby allowing quicker production timelines and minimizing environmental impact. Contango’s strategy has succeeded at the Manh Choh project, developed in partnership with Kinross Gold Corp, demonstrating the company’s ability to bring gold mines into production efficiently. Contango’s portfolio, post-merger, is expected to exceed 150,000 ounces of gold per year. HighGold’s CEO Darwin Green supports the merger, believing that the integration will capitalize on the synergies of both companies’ projects and accelerate the development trajectory of the Johnson Tract.

Mining, Metals & Mining,Alaska, United States, Canada

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