Queen’s Road Capital Announces Investment in Contango ORE | 2022-04-09 | Press Releases

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Hong Kong, Hong Kong–(Newsfile Corp. – April 9, 2022) – Queen’s Road Capital Investment Ltd. (TSXV: QRC) (the “Company” or “QRC”) is pleased to announce that it has entered into a binding agreement with Contango ORE, Inc. (“CORE”) pursuant to which the Company will purchase US$20,000,000 of convertible debentures which will be issued by CORE.

The convertible debentures will have a term of 4 years, will bear a coupon of 8.0% (6.0% payable in cash and 2.0% payable in shares), an establishment fee of 3% and will be convertible into common shares from CORE for $30.50.

CORE is an American gold development company that holds a 30% interest in the Peak Gold, LLC (“Peak Gold”) partnership with Kinross Gold Corp. (“Kinross”), 70% owner and manager. Peak Gold is developing the Manh Choh deposit located in Alaska on land owned by the indigenous Tetlin Tribe of Alaska. Peak Gold has a typical mining lease agreement with the Tetlin Tribe under which the Tetlin Tribe will receive royalty payments as well as commitments for jobs and training for members of the tribe. The feasibility study at Manh Choh is expected to be completed in the first half of 2022, with first gold pour scheduled for 2024. Kinross has informed CORE that it expects to produce over one million ounces of gold to Peak Gold over a 4.5 year life based on current resources with estimated all-in sustaining costs (ASIC) of $750/oz and estimated total capital costs of up to $130 million. Ore mined at Peak Gold will be trucked to the Kinross mill in Fort Knox, resulting in anticipated capital cost savings and an accelerated permitting process.

CORE also owns the Lucky Shot gold property in Alaska. Lucky Shot has historically produced 250,000 ounces at a grade of 40 g/t gold. CORE is led by Mr. Rick Van Nieuwenhuyse. Rick founded Novagold Resources Inc., which is developing the world-class Donlin gold deposit in Alaska jointly with Barrick Gold Corp., and NovaCopper Inc., now Trilogy Metals Inc., which is developing the polymetallic Ambler deposit in Alaska jointly with South32 Ltd.

Proceeds from the convertible debenture investment are expected to be used to fund CORE’s share of costs to Peak Gold and to advance exploration activities at its wholly-owned gold projects in Alaska, including the Lucky Shot property.

Warren Gilman, President and CEO, said, “QRC is delighted to partner with Rick in his new venture. Manh Choh is the most advanced gold development project in Alaska and, with Kinross at the helm, we have no doubt that Peak Gold will become Alaska’s project. next gold producer. CORE’s other assets also present exciting exploration opportunities that Rick and his team are best positioned to advance. As a premier investment in the gold sector, CORE offers both production and near-term exploration to QRC and its shareholders.

Completion of the investment is subject to receipt of all required regulatory approvals and is expected to occur no later than April 29, 2022.

About Queen’s Road Capital Investment Ltd.

Queen’s Road Capital is a leading, dividend-paying financier in the global resource sector. The Company is a resource-based investment company, which invests in private and publicly traded resource companies. The Company acquires and holds securities for long-term capital appreciation, with an emphasis on convertible debt securities and resource projects in advanced development or production located in politically safe jurisdictions.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FOR FURTHER INFORMATION, visit the Company’s website at www.queensrdcapital.com or contact by email [email protected] or by phone at +852 2759 2022

Caution Regarding Forward-Looking Statements

Certain statements contained in this press release, which are not historical in nature, constitute “forward-looking statements” as that term is defined under applicable Canadian securities laws. These statements include, but are not limited to, statements or information regarding the Company’s growth strategy and the Company’s future performance. These statements reflect management’s current assumptions and expectations and, by their nature, are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors that could cause actual results, actual events or performance that differ materially from those expressed or implied by such forward-looking statements. research statements. These risks include the interpretation of drilling results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not meet our expectations; fluctuations in commodity prices and currencies; failure to obtain adequate financing; regulation, recovery rates, refining costs, inability to identify or successfully complete business transactions and other relevant conversion factors, permitting and licensing risks; and general market and mineral exploration risks. Forward-looking statements should not be construed as investment advice. Readers should make a detailed and independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward-looking statement to reflect events or changed circumstances after the date hereof.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/119981

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