Contango Silver and Gold Inc. has entered into an agreement to settle milestone payments totaling $18.75 million on the Lucky Shot Project in exchange for $5 million in cash and 100,000 common shares of the company. This strategic move reduces the company's financial obligations related to the project while preserving liquidity. The agreement allows Contango to manage its capital structure more effectively by utilizing a combination of cash and equity to satisfy debts.

In addition to the settlement, Contango received a $9 million cash distribution on June 25, 2026, from the Peak Gold JV. This distribution is related to production from its second campaign of 2026 at the Manh Choh mine. The influx of cash provides immediate working capital to support ongoing operations and future development activities.

The Lucky Shot Project settlement involves the exchange of specific securities to resolve the outstanding milestone payments. By issuing 100,000 common shares, Contango minimizes immediate cash outflow while aligning the interests of stakeholders. The remaining $5 million cash payment completes the settlement arrangement.

Financial Impact

The transactions significantly alter Contango's financial position. The settlement removes a substantial liability from the balance sheet, while the $9 million distribution enhances cash reserves. These developments are expected to strengthen the company's ability to fund its exploration and production initiatives.

Transaction Details

Contango continues to focus on optimizing its asset portfolio and leveraging joint venture partnerships to generate value. The recent transactions reflect the company's commitment to financial flexibility and operational efficiency.

Contango Silver & Gold Inc. announced the outcomes of its 2026 annual meeting of stockholders, held on June 18, 2026. Shareholders re-elected seven directors to serve until the 2027 annual meeting of stockholders and ratified the appointment of the company's independent auditor for the upcoming fiscal year.

The board of directors now includes Clynton Nauman, Rick Van Nieuwenhuyse, Shawn Khunkhun, Michael Cinnamond, Tim Clark, Darren Devine, and Brad Juneau. These individuals will oversee the company's exploration and production activities in Alaska and British Columbia.

Proposals Approved

Stockholders approved three key proposals during the meeting. The ratification of Baker Tilly US, LLP as the independent auditors for the fiscal year ending December 31, 2026, was confirmed. Additionally, advisory votes regarding executive compensation were passed.

The approved proposals included:

Contango Silver & Gold Inc. is listed on the NYSE American and TSX exchanges. The company focuses on the exploration, development, and production of gold and associated minerals, holding interests in projects such as the Peak Gold JV, Johnson Tract, and Lucky Shot.