Contango Refreshes $75 Million ATM Alongside Weak Quarter and Debt Schedule
Company Background
Contango Silver & Gold (NYSE American/TSX: CTGO) is a North American precious metals company whose cash flows depend almost entirely on a 30% interest in the Peak Gold JV — a producing gold mine in Alaska operated by Kinross Gold at Manh Choh. First gold was poured in July 2024 and the mine delivered $102 million in distributions to Contango in 2025. The company completed a merger-of-equals with Dolly Varden Silver Corporation in March 2026, nearly doubling its project portfolio to include the Kitsault Valley silver-gold assets in British Columbia and expanding its share count to roughly 33.5 million shares outstanding.
The Dolly Varden merger added significant exploration assets but also substantial spending obligations. For 2026, Contango is running a $21 million underground drill program at Lucky Shot in Alaska, a $17 million infrastructure and permitting program at Johnson Tract, and a $25 million, 40,000-meter campaign at Kitsault Valley — all simultaneously, while Manh Choh is in a lower-production transition year as it moves from the North Pit to the higher-grade South Pit. The company's 2026 production guidance of 40,000-45,000 gold equivalent ounces at cash costs of $1,900-$2,000 per ounce represents a step down from 2025's 60,200 ounces at $1,459 per ounce, before an expected rebound in 2027 to 75,000-80,000 ounces at $1,200-$1,300 per ounce.
The balance sheet has seen considerable activity. A $50 million underwritten offering in September 2025 funded debt paydown and hedge repurchases. A second $50 million underwritten offering closed February 12, 2026, with roughly $45 million of that used to buy back underwater gold hedge contracts. In July 2026, the company converted its remaining 15,000 ounces of hedge obligations into $33.7 million of additional debt — a deliberate choice to eliminate the gold price ceiling on future cash flows — bringing the credit facility balance to $46.3 million. The auditor was also changed in June 2026, from Baker Tilly US to BDO Canada LLP, with no disagreements disclosed.
What Was Disclosed
On November 13, 2026, Contango entered into a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co. as lead agent, and eight co-agents including Canaccord Genuity, National Bank Financial, ATB Capital Markets, Haywood Securities, BTIG, Maxim Group, Research Capital USA, and Freedom Capital Markets. The agreement allows the company to sell up to $75 million of common stock in at-the-market transactions at a commission of up to 3% of gross proceeds. The company is not obligated to sell any shares under the agreement and may suspend or terminate it at any time. Notably, the new agreement replaced — and terminated — a prior Sales Agreement with Cantor Fitzgerald dated June 8, 2023, making this a refresh of an existing ATM structure rather than a new facility added on top of outstanding capital arrangements. Net proceeds, if any, are earmarked for general corporate purposes.