CGOLF - Contact Gold Announces Purchase of Waterton's Entire Position by New and Existing Shareholders
(TheNewswire)
Vancouver, B.C. - TheNewswire - (April 27, 2023) – Contact Gold Corp.(the “Company” or “Contact Gold”) (TSXV:C ) ; ( OTC:CGOLF) announcesthat Waterton Precious Metals Fund II Cayman, LP (“Waterton”) hasinformed the Company that it has sold its entire equity position inContact Gold in a block trade (the “Block Sale”) through thefacilities of the Pure Trading alternative trading system on April 26,2023.
The Contact Gold common shares sold by Waterton wereacquired by a number of purchasers, including certain insiders of theCompany alongside experienced precious metals investors. Theaggregate value of the Block Sale was $1,511,469, or $0.015 per commonshare.
As a result of the Block Sale, directors and management now hold 10.1% of the common sharesin aggregate.
Waterton was a major shareholder of Contact Gold datingback to the Company’s acquisition of the Pony Creek gold projectprior to going public in June of 2017. Immediately prior to theBlock Sale, Waterton owned 100,764,627 common shares of Contact Gold,representing approximately 28.66% of the Company.
“Waterton was one of the original institutionalshareholders in Contact Gold. As a private equity fund with investmentand divestment parameters, the timing of the sale was beneficial toboth Waterton and the Company. We believe that the Block Sale willallow for increased trading liquidity, and open up new strategicopportunities. Further, the acquisition ofContact Gold shares by new and existing shareholders is a strong voteof confidence in the Company and a testament to its compellingvaluation.” said Matt Lennox-King, President and CEO of ContactGold.
“We are excited to welcome our new shareholders andthank Waterton for their support over the years. Next up for ContactGold is the resumption of drilling in June at our Green Springs oxidegold project, where Centerra Gold is funding a US$1.85 million 2023 explorationprogram as part of a US$10 million earn-in signed in December 2022. We look forward to resuming drilling at Green Springs to follow upon the high-grade intercepts from our last exploration programs.”
Waterton will be filing an early warning report underNational Instrument 62-103 – The Early Warning System in connection withthe sale of the Contact Gold shares, a copy of which will be availableunder the Company’s profile on SEDAR at www.sedar.com . As a result of theBlock Sale, and Waterton no longer holding any Contact Gold commonshares, Waterton will no longer file insider or early warning reportsin respect of its ownership of securities of Contact Gold, except asrequired by applicable law.
Waterton’s address is c/o Waterton Global ResourceManagement Inc., Commerce Court West, 199 Bay Street, Suite 5050,Toronto ON, M5L 1E2. Contact Richard Wells, Partner, Chief FinancialOfficer of Waterton Global Resource Management at (416) 504-3507 forfurther information.
Contact Gold’s address is 400 Burrard Street, Suite1050, Vancouver BC, V6C 3A6. Contact John Wenger, Chief FinancialOfficer of Contact Gold at (604) 426-1295 for furtherinformation.
About Contact Gold Corp.
Contact Gold is an exploration company focused onmaking district scale gold discoveries in Nevada. The Company’sextensive land holdings are on the prolific Carlin and Cortez goldtrends, which host numerous gold deposits and mines. Contact Gold’sland position comprises approximately 144 km 2 of target-richmineral tenure hosting numerous known gold occurrences, ranging fromearly- to advanced-exploration and current gold resources. TheCompany’s 100% owned Pony Creek project is located immediately southof Orla Mining Ltd.’s feasibility-stage South Railroad Project, onthe Southern Carlin Trend (TSX: OLA). The Company published afirst-time mineral resource estimate at Pony Creek in early 2022.Exploration at the Company’s Green Springs project is being fundedthrough a partnership with Centerra Gold Inc. pursuant to an earn-inarrangement.
Additional information about the Company is availableat www.contactgold.com .
For more information, please contact: +1 (604)449-3361
Matthew Lennox-King – President & CEO
E-mail: info@ContactGold.com
Neither the TSXV nor its RegulationServices Provider (as that term is defined in the policies of theTSXV) accepts responsibility for the adequacy of this release. Nostock exchange, securities commission or other regulatory authorityhas approved or disapproved the information contained herein.
Cautionary Note RegardingForward-Looking Information
This news release contains"forward-looking information" and "forward-lookingstatements" (collectively, "forward-lookingstatements") within the meaning of the applicable Canadiansecurities legislation. All statements, other than statements ofhistorical fact, are forward-looking statements and are based onexpectations, estimates and projections as at the date of this newsrelease. Any statement that involves discussions with respect topredictions, expectations, beliefs, plans, projections, objectives,assumptions, future events or performance (often but not always usingphrases such as "expects", or "does not expect","is expected", "anticipates" or "does notanticipate", "plans", "budget","scheduled", "forecasts", "estimates","believes" or "intends" or variations of suchwords and phrases or stating that certain actions, events or results"may" or "could", "would","might" or "will" be taken to occur or beachieved) are not statements of historical fact and may beforward-looking statements. In this news release, forward-lookingstatements relate, among other things, to the anticipated explorationactivities of the Company at the Green Springs and Pony Creekproperties, and the completion of the earn-in by Centerra at GreenSprings.
These forward-looking statements arebased on reasonable assumptions and estimates of management of theCompany at the time such statements were made. Actual future resultsmay differ materially as forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause theactual results, performance or achievements of the Company tomaterially differ from any future results, performance or achievementsexpressed or implied by such forward-looking statements. Such factors,among other things, include: fluctuations in general macroeconomicconditions; fluctuations in securities markets; fluctuations in spotand forward prices of gold, silver, base metals or certain othercommodities; fluctuations in currency markets (such as the Canadiandollar to United States dollar exchange rate); change in national andlocal government, legislation, taxation, controls, regulations andpolitical or economic developments (including those arising from theCovid-19 coronavirus outbreak); risks and hazards associated with thebusiness of mineral exploration, development and mining (includingenvironmental hazards, industrial accidents, unusual or unexpectedformations pressures, cave-ins and flooding); inability to obtainadequate insurance to cover risks and hazards; the presence of lawsand regulations that may impose restrictions on mining; employeerelations; relationships with and claims by local communities andindigenous populations; availability of increasing costs associatedwith mining inputs and labour; the speculative nature of mineralexploration and development (including the risks of obtainingnecessary licenses, permits and approvals from governmentauthorities); and title to properties. Although the forward-lookingstatements contained in this news release are based upon whatmanagement of the Company believes, or believed at the time, to bereasonable assumptions, the Company cannot assure shareholders thatactual results will be consistent with such forward-lookingstatements, as there may be other factors that cause results not to beas anticipated, estimated or intended. Readers should not place unduereliance on the forward-looking statements and information containedin this news release. The Company assumes no obligation to update theforward-looking statements of beliefs, opinions, projections, or otherfactors, should they change, except as required by law.
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