Contango ORE, Inc. announced that it completed the formation of a joint venture with Royal Alaska, LLC to advance exploration and development on the Tetlin properties in Alaska. The company entered into a Master Agreement with Royal Gold last September that provided for the contribution by the company to the joint venture of the Tetlin lease and State of Alaska mining claims near Tok, Alaska prospective for gold and associated minerals, together with other personal property, which are collectively valued at $45.7 million by the joint venture. Following stockholder approval of the transaction at the annual meeting of CORE held, and pursuant to the Master Agreement, the parties formed Peak Gold, LLC to hold the joint venture assets.

The joint venture will be managed by a Management Committee consisting of representatives of Royal Gold and the Company. Royal Golds initial investment of $5 million will fund exploration activity, and Royal Gold will have the option to earn up to a 40% economic interest in the joint venture by investing up to $30 million (inclusive of the initial $5 million investment) prior to October 2018. The proceeds of Royal Golds investment will be used by the joint venture for additional exploration and development of the Tetlin properties.