Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2024 | Nov. 14, 2024 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001502377 | |
Entity Registrant Name | CONTANGO ORE, INC. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-35770 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-3431051 | |
Entity Address, Address Line One | 516 2nd Avenue, Suite 401 | |
Entity Address, City or Town | Fairbanks | |
Entity Address, State or Province | AK | |
Entity Address, Postal Zip Code | 99701 | |
City Area Code | 907 | |
Local Phone Number | 888-4273 | |
Title of 12(b) Security | Common Stock, Par Value $0.01 per share | |
Trading Symbol | CTGO | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,228,479 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2024 | Dec. 31, 2023 |
CURRENT ASSETS: | ||
Cash | $ 36,165,442 | $ 15,504,819 |
Restricted cash | 235,364 | 232,572 |
Prepaid expenses and other | 1,083,910 | 1,112,910 |
Total current assets | 37,484,716 | 16,850,301 |
LONG-TERM ASSETS: | ||
Investment in Peak Gold, LLC | 67,544,376 | 28,064,405 |
Property & equipment, net | 52,485,380 | 13,326,347 |
Commitment fee | 76,696 | 350,575 |
Marketable securities | 740,700 | 0 |
Total long-term assets | 120,847,152 | 41,741,327 |
TOTAL ASSETS | 158,331,868 | 58,591,628 |
CURRENT LIABILITIES: | ||
Accounts payable | 2,378,654 | 250,739 |
Accrued liabilities | 12,227,927 | 2,241,087 |
Derivative contract liability | 30,254,431 | 2,679,784 |
Debt, current portion | 34,900,000 | 7,900,000 |
Income taxes payable | 718,827 | 0 |
Total current liabilities | 80,479,839 | 13,071,610 |
NON-CURRENT LIABILITIES: | ||
Advance royalty reimbursement | 1,135,611 | 1,200,000 |
Asset retirement obligations | 255,769 | 246,227 |
Contingent consideration liability | 1,100,480 | 1,100,480 |
Derivative contract liability | 44,285,191 | 20,737,997 |
Debt non-current portion, net | 38,962,344 | 36,779,859 |
Deferred tax liability | 2,330,577 | 0 |
Total non-current liabilities | 88,069,972 | 60,064,563 |
TOTAL LIABILITIES | 168,549,811 | 73,136,173 |
COMMITMENTS AND CONTINGENCIES (NOTE 11) | ||
STOCKHOLDERS’ EQUITY/(DEFICIT): | ||
Preferred Stock, 15,000,000 shares authorized | ||
Common Stock, $0.01 par value, 45,000,000 shares authorized; 12,226,238 shares issued and 12,223,758 shares outstanding as of September 30, 2024; 9,454,233 shares issued and 9,451,753 shares outstanding as of December 31, 2023 | 122,261 | 94,542 |
Additional paid-in capital | 177,505,358 | 124,451,067 |
Treasury stock at cost (2,480 at September 30, 2024; and 2,480 shares at December 31, 2023) | (48,308) | (48,308) |
Accumulated deficit | (187,797,254) | (139,041,846) |
TOTAL STOCKHOLDERS’ EQUITY/(DEFICIT) | (10,217,943) | (14,544,545) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY/(DEFICIT) | $ 158,331,868 | $ 58,591,628 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2024 | Dec. 31, 2023 |
Preferred Stock, Shares Authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Common stock, shares issued (in shares) | 12,226,238 | 9,454,233 |
Common stock, shares outstanding (in shares) | 12,223,758 | 9,451,753 |
Treasury stock, sharesTreasury stock, shares (in shares) | 2,480 | 2,480 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
EXPENSES: | ||||
Claim rental expense | $ (180,276) | $ (127,006) | $ (436,510) | $ (379,909) |
Exploration expense | (2,957,498) | (1,081,927) | (3,079,930) | (2,344,307) |
Depreciation expense | (34,253) | (25,997) | (88,245) | (94,070) |
Accretion expense | (3,221) | (3,183) | (9,542) | (9,069) |
Impairment from loss, net of recovery | 0 | 0 | 0 | (7,111) |
General and administrative expense | (2,611,625) | (2,767,477) | (7,272,026) | (7,258,440) |
Total expenses | (5,786,873) | (4,005,590) | (10,886,253) | (10,092,906) |
Income/(loss) from equity investment in Peak Gold, LLC | 28,525,857 | (5,609,288) | 27,689,971 | (17,419,288) |
Total income/(expense) from operations | 22,738,984 | (9,614,878) | 16,803,718 | (27,512,194) |
OTHER INCOME/(EXPENSE): | ||||
Interest income | 76,313 | 39,045 | 98,772 | 52,352 |
Interest expense | (3,683,150) | (847,983) | (8,634,514) | (1,911,472) |
Gain/(loss) on derivative contracts | (28,844,179) | (2,725,411) | (57,023,000) | (2,725,411) |
Gain/(loss) on metal sales | 873,984 | 0 | 873,984 | 0 |
Unrealized gain/(loss) on marketable securities | (219,930) | 0 | (219,930) | 0 |
Other income | 64,389 | 0 | 64,389 | 606,499 |
Total other income/(expense) | (31,732,573) | (3,534,349) | (64,840,299) | (3,978,032) |
(Loss) / income before income taxes | (8,993,589) | (13,149,227) | (48,036,581) | (31,490,226) |
Income tax expense | (718,827) | 0 | (718,827) | 0 |
NET LOSS | $ (9,712,416) | $ (13,149,227) | $ (48,755,408) | $ (31,490,226) |
NET LOSS PER SHARE | ||||
Net loss per share, basic | $ (0.81) | $ (1.47) | $ (4.67) | $ (3.93) |
Net loss per share, diluted | $ (0.81) | $ (1.47) | $ (4.67) | $ (3.93) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||
Weighted average number of shares outstanding, basic | 11,973,992 | 8,935,863 | 10,447,870 | 8,009,699 |
Weighted average number of shares outstanding, diluted | 11,973,992 | 8,935,863 | 10,447,870 | 8,009,699 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2024 | Sep. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (48,755,408) | $ (31,490,226) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Stock-based compensation | 1,973,164 | 2,072,650 |
Depreciation expense | 88,245 | 94,070 |
Accretion expense | 9,542 | 9,069 |
Impairment expense | 0 | 7,111 |
Equity (earnings) loss from investment in Peak Gold, LLC | (27,689,971) | 17,419,288 |
Cash distribution from Peak Gold, LLC | 19,500,000 | 0 |
Unrealized loss from derivative contracts | 51,121,840 | 2,725,411 |
Unrealized loss from marketable securities | 219,930 | 0 |
Interest expense paid in stock | 300,048 | 505,535 |
Change in the fair value of contingent consideration | 0 | (606,500) |
Amortization of debt discount and debt issuance fees | 2,994,669 | (39,056) |
Non-cash other income from reimbursement of silver royalty | (64,389) | 0 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in prepaid expenses and other | 370,242 | 21,486 |
Increase (decrease) in accounts payable and accrued liabilities | 9,852,343 | 1,596,295 |
Increase in income taxes payable | 718,827 | 0 |
Net cash provided by (used) in operating activities | 10,639,082 | (7,684,867) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Cash invested in Peak Gold, LLC | (31,290,000) | (38,840,000) |
Acquisition of property and equipment | (42,344) | (6,995) |
Net cash used in investing activities | (31,914,758) | (38,847,714) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Cash paid for shares withheld from employees for payroll tax withholding | 0 | (60,686) |
Cash proceeds from warrant exercise | 0 | 6,886,000 |
Cash proceeds from debt | 30,000,000 | 17,647,500 |
Principal repayments on debt | (2,000,000) | 0 |
Cash proceeds from common stock and warrant issuance, net | 15,477,398 | 34,144,190 |
Debt issuance costs | (1,538,307) | (2,342,269) |
Net cash provided (used) in financing activities | 41,939,091 | 56,274,735 |
NET INCREASE IN CASH | 20,663,415 | 9,742,154 |
CASH AND RESTRICTED CASH, BEGINNING OF PERIOD | 15,737,391 | 8,996,154 |
CASH AND RESTRICTED CASH, END OF PERIOD | 36,400,806 | 18,738,308 |
Supplemental disclosure of cash flow information | ||
Interest expense | 4,672,934 | 1,079,971 |
Noncash Investing and Financing Items [Abstract] | ||
Commitment fee derecognized and added to debt discount | 679,943 | 0 |
Shares issued for acquisitions | 35,331,402 | 0 |
Consideration payable for Avidian acquisition | 557,945 | 0 |
Accrued transaction costs for HighGold acquisition | 255,120 | 0 |
Total non-cash investing and financing activities: | 36,824,410 | 0 |
Acquisition of HighGold Mining Inc. and Avidian Gold Corp. [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of HighGold Mining Inc. and Avidian Gold Corp., net of cash acquired | (582,414) | 0 |
Acquisition of Contango Lucky Shot Alaska, L L C [Member] | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of Contango Lucky Shot Alaska, LLC | $ 0 | $ (719) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Deficit [Member] |
Balance (in shares) at Dec. 31, 2022 | 7,101,395 | ||||
Balance at Dec. 31, 2022 | $ (777,383) | $ 71,014 | $ 79,086,142 | $ 0 | $ (79,934,539) |
Stock-based compensation | 2,072,650 | $ 0 | 2,072,650 | 0 | 0 |
Restricted stock activity (in shares) | 95,306 | ||||
Restricted stock activity | 0 | $ 952 | (952) | 0 | 0 |
Common stock issuance (in shares) | 1,875,961 | ||||
Common stock issuance | 36,477,528 | $ 18,760 | 36,458,768 | 0 | 0 |
Cost of common stock issuance | (2,811,001) | 0 | (2,811,001) | 0 | 0 |
Treasury shares issued in common stock issuance | 39,481 | 0 | 0 | 39,481 | 0 |
Warrants | 5,858,772 | $ 3,130 | 5,855,642 | 0 | 0 |
Warrants (in shares) | 313,000 | ||||
Warrant modification | (382,769) | $ 0 | (382,769) | 0 | 0 |
Fair value of warrants issued with common stock | 1,848,179 | 0 | 1,848,179 | 0 | 0 |
Treasury shares issued for convertible note interest payment | (238,886) | $ 0 | 0 | (238,886) | 0 |
Stock issued for convertible note interest payment (in shares) | 10,977 | ||||
Stock issued for convertible note interest payment | 505,535 | $ 110 | 266,539 | 238,886 | 0 |
Treasury shares withheld for employee taxes (in shares) | (1,527) | ||||
Treasury shares withheld for employee taxes | (60,686) | $ (15) | 0 | (60,671) | 0 |
Net Income (Loss) | (31,490,226) | $ 0 | 0 | 0 | (31,490,226) |
Balance (in shares) at Sep. 30, 2023 | 9,395,112 | ||||
Balance at Sep. 30, 2023 | 11,041,194 | $ 93,951 | 122,393,198 | (21,190) | (111,424,765) |
Balance (in shares) at Jun. 30, 2023 | 7,781,690 | ||||
Balance at Jun. 30, 2023 | (4,773,438) | $ 77,817 | 93,424,283 | 0 | (98,275,538) |
Stock-based compensation | 739,783 | $ 0 | 739,783 | 0 | 0 |
Restricted stock activity (in shares) | 10,140 | ||||
Restricted stock activity | 0 | $ 101 | (101) | 0 | 0 |
Common stock issuance (in shares) | 1,600,000 | ||||
Common stock issuance | 30,400,000 | $ 16,000 | 30,384,000 | 0 | 0 |
Cost of common stock issuance | (2,221,392) | $ 0 | (2,221,392) | 0 | 0 |
Stock issued for convertible note interest payment (in shares) | 3,282 | ||||
Stock issued for convertible note interest payment | 66,658 | $ 33 | 66,625 | 0 | 0 |
Treasury shares withheld for employee taxes | (21,190) | 0 | 0 | (21,190) | 0 |
Net Income (Loss) | (13,149,227) | $ 0 | 0 | 0 | (13,149,227) |
Balance (in shares) at Sep. 30, 2023 | 9,395,112 | ||||
Balance at Sep. 30, 2023 | 11,041,194 | $ 93,951 | 122,393,198 | (21,190) | (111,424,765) |
Balance (in shares) at Dec. 31, 2023 | 9,454,233 | ||||
Balance at Dec. 31, 2023 | (14,544,545) | $ 94,542 | 124,451,067 | (48,308) | (139,041,846) |
Stock-based compensation | 1,973,164 | $ 0 | 1,973,164 | 0 | 0 |
Restricted stock activity (in shares) | 159,150 | ||||
Restricted stock activity | 0 | $ 1,592 | (1,592) | 0 | 0 |
Common stock issuance (in shares) | 819,565 | ||||
Common stock issuance | 14,695,999 | $ 8,195 | 14,687,804 | 0 | 0 |
Cost of common stock issuance | (1,365,325) | $ 0 | (1,365,325) | 0 | 0 |
Common stock issuance for acquisitions (shares) | 1,777,398 | ||||
Common stock issuance for acquisitions | 35,331,402 | $ 17,773 | 35,313,629 | ||
Issuance of warrants | 2,146,722 | $ 0 | 2,146,722 | 0 | 0 |
Stock issued for convertible note interest payment (in shares) | 15,892 | ||||
Stock issued for convertible note interest payment | 300,048 | $ 159 | 299,889 | 0 | 0 |
Net Income (Loss) | (48,755,408) | $ 0 | 0 | 0 | (48,755,408) |
Balance (in shares) at Sep. 30, 2024 | 12,226,238 | ||||
Balance at Sep. 30, 2024 | (10,217,943) | $ 122,261 | 177,505,358 | (48,308) | (187,797,254) |
Balance (in shares) at Jun. 30, 2024 | 10,365,914 | ||||
Balance at Jun. 30, 2024 | (37,879,472) | $ 103,658 | 140,150,016 | (48,308) | (178,084,838) |
Stock-based compensation | 660,985 | $ 0 | 660,985 | 0 | 0 |
Restricted stock activity (in shares) | 14,650 | ||||
Restricted stock activity | 0 | $ 147 | (147) | 0 | 0 |
Common stock issuance (in shares) | 63,700 | ||||
Common stock issuance | 1,350,275 | $ 637 | 1,349,638 | 0 | 0 |
Cost of common stock issuance | (68,715) | (68,715) | 0 | 0 | |
Common stock issuance for acquisitions (shares) | 1,777,398 | ||||
Common stock issuance for acquisitions | 35,331,402 | $ 17,773 | 35,313,629 | ||
Stock issued for convertible note interest payment (in shares) | 4,576 | ||||
Stock issued for convertible note interest payment | 99,998 | $ 46 | 99,952 | 0 | 0 |
Net Income (Loss) | (9,712,416) | $ 0 | 0 | 0 | (9,712,416) |
Balance (in shares) at Sep. 30, 2024 | 12,226,238 | ||||
Balance at Sep. 30, 2024 | $ (10,217,943) | $ 122,261 | $ 177,505,358 | $ (48,308) | $ (187,797,254) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (9,712,416) | $ (13,149,227) | $ (48,755,408) | $ (31,490,226) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On September 27, 2024 , Brad Juneau , a director of the Company, adopted a “Rule 10b5-1 trading arrangement” as defined in Item 408(a) of Regulation S-K intended to satisfy Rule 10b5-1(c) to sell up to 190,000 shares of our common stock between $22.50 and $29.95 subject to the terms and conditions of such arrangement. Other than as disclosed above, during the three months ended September 30, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K. |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Brad Juneau [Member] | |
Trading Arrangements, by Individual | |
Name | Brad Juneau |
Title | director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 27, 2024 |
Aggregate Available | 190,000 |
Note 1 - Organization and Busin
Note 1 - Organization and Business | 9 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | 1. Organization and Business Contango ORE, Inc. (“CORE” or the “Company”) was formed on September 1, 2010 as a Delaware corporation for the purpose of engaging in the exploration for and development of gold ore and associated minerals in the State of Alaska. On January 8, 2015, CORE Alaska, LLC, a wholly-owned subsidiary of the Company (“CORE Alaska”), and a subsidiary of Royal Gold, Inc. (“Royal Gold”) formed Peak Gold, LLC (the “Peak Gold JV”). On September 30, 2020, CORE Alaska sold a 30.0 % membership interest in the Peak Gold JV to KG Mining (Alaska), Inc. (“KG Mining”), an indirect wholly-owned subsidiary of Kinross Gold Corporation (“Kinross”), a large gold producer with a diverse global portfolio and extensive operating experience in Alaska. The sale was referred to as the “CORE Transactions”. Concurrently with the CORE Transactions, KG Mining, in a separate transaction, acquired 100 % of the equity of Royal Alaska, LLC from Royal Gold, which held Royal Gold’s 40.0 % membership interest in the Peak Gold JV (the “Royal Gold Transactions” and, together with the CORE Transactions, the “Kinross Transactions”). After the consummation of the Kinross Transactions, CORE Alaska retained a 30.0 % membership interest in the Peak Gold JV. KG Mining now holds a 70.0 % membership interest in the Peak Gold JV and Kinross serves as the manager of the Peak Gold JV and operator of the Manh Choh (as defined below) mines. The Company conducts its business through the below primary means: • its 30.0 % membership interest in Peak Gold JV, which leases approximately 675,000 acres from the Tetlin Tribal Council and holds approximately 13,000 additional acres of State of Alaska mining claims (such combined acreage, the “Peak Gold JV Property”) for exploration and development, including in connection with the Peak Gold JV’s plan to mine ore from the Main and North Manh Choh deposits within the Peak Gold JV Property (“Manh Choh” or the “Manh Choh Project”); • its wholly-owned subsidiary, Contango Mining Canada Inc., a corporation organized under the laws of British Columbia (“Contango Mining Canada”), which holds the Company’s 100 % equity interest in HighGold Mining Inc., a corporation existing under the laws of the Province of British Columbia (“HighGold”), which holds the Company’s 100 % equity interest in JT Mining, Inc., which leases for exploration the mineral rights to approximately 21,000 acres (“Johnson Tract” or the “Johnson Tract Project”), located near tidewater, 125 miles southwest of Anchorage, Alaska, from Cook Inlet Region, Inc. (“CIRI”), one of 12 land-based Alaska Native regional corporations created by the Alaska Native Claims Settlement Act of 1971; • its wholly-owned subsidiary, Contango Lucky Shot Alaska, LLC ("LSA") (formerly Alaska Gold Torrent, LLC), an Alaska limited liability company, which leases for exploration the mineral rights to approximately 8,600 acres of State of Alaska and patented mining claims ("Lucky Shot" or the "Lucky Shot Property"), located in the Willow Mining District about 75 miles north of Anchorage, Alaska, from Alaska Hard Rock, Inc.; • its wholly-owned subsidiary, Contango Minerals Alaska, LLC (“Contango Minerals”), which separately owns the mineral rights to approximately 145,280 acres of State of Alaska mining claims for exploration, including (i) approximately 69,780 acres located immediately northwest of the Peak Gold JV Property (the “Eagle/Hona Property”), (ii) approximately 14,800 acres located northeast of the Peak Gold JV Property (the “Triple Z Property”), (iii) approximately 52,700 acres of new property in the Richardson district of Alaska (the “Shamrock Property”) and (iv) approximately 8,000 acres located to the north and east of the Lucky Shot Property (the “Willow Property” and, together with the Eagle/Hona Property, the Triple Z Property, and the Shamrock Property, collectively the “Minerals Property”); and • its wholly-owned subsidiary, Avidian Gold Alaska Inc., an Alaskan corporation (“Avidian Alaska”), which separately owns the mineral rights to approximately 11,711 acres of State of Alaska mining claims and upland mining leases for exploration, including (i) approximately 1,021 acres located in the Fairbanks Mining District approximately three miles east of the Fort Knox Gold Mine and 20 miles north of Fairbanks, Alaska, and (ii) approximately 10,690 acres located in the Valdez Creek Mining District on the eastern edge of the Alaska Range, located, approximately 150 miles southwest of Fairbanks, Alaska, along the George Parks Highway; and which leases for exploration the mineral rights to approximately 3,380 acres of State of Alaska mining claims, leasehold locations and an upland mining lease (the “Amanita Property”), located in the Fairbanks Mining District approximately five miles southwest of the Fort Knox Gold Mine and about 10 miles north of Fairbanks, Alaska. The Johnson Tract Project, Lucky Shot Property and Avidian Alaska are collectively referred to in these Notes to Unaudited Condensed Consolidated Financial Statements as the “Contango Properties”. The Company’s Manh Choh Project is in the production stage, while all other projects are in the exploration stage. |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Immaterial Correction of the Presentation of Income/(Loss) from Equity Investment | 9 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Immaterial Correction of the Presentation of Income/(Loss) from Equity Investment | 2. Basis of Presentation and Immaterial Correction of the Presentation of Income/(Loss) from Equity Investment The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), including instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by US GAAP for complete annual consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation of the consolidated financial statements have been included. All such adjustments are of a normal recurring nature. The consolidated financial statements should be read in conjunction with the consolidated audited financial statements and notes included in the Company’s Form 10-KT for the six-month period ended D ecember 31, 2023 and its Form 10-K for the fiscal year ended June 30, 2023. The results of operations for the three and nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. The Company has reclassified the presentation of the “Income/(loss) from equity investment in Peak Gold, LLC” in its Statements of Operations for the nine months ended September 30, 2024. The “Income/(loss) from equity investment in Peak Gold, LLC” was previously presented in “Other Income/(Expense)” and is now presented within income from operations on the Statement of Operations. The change in presentation will have no impact on Net Income/(Loss) for all impacted periods. |
Note 3 - Liquidity
Note 3 - Liquidity | 9 Months Ended |
Sep. 30, 2024 | |
Notes To Financial Statements [Abstract] | |
Liquidity | 3. Liquidity The Company’s cash needs going forward will primarily relate to exploration of the Contango Properties, repayment of debt and related interest, and general and administrative expenses of the Company. There are no anticipated future cash calls going forward from the Peak Gold JV as operations commenced in July 2024 which has allowed the Peak Gold JV to operate from the cash flows generated from its operations. Management Committee approved a significant budget to complete the required development to start the operations of the Manh Choh mine, which began production early in the third quarter of 2024 and remains on track to deliver its planned production this year. The entire $ 31.3 million of capital calls necessary for the Peak Gold JV to reach production have already been funded by the Company as of September 30, 2024. As of September 30, 2024, the Company has funded $ 78.6 million of the 2023 and 2024 capital calls to the Peak Gold JV, of which $ 60.0 million was funded from the Facility (as defined below). The Company believes it has sufficient capital to continue production at the Manh Choh mine, with its cash on hand. The Company received its first distribution of $ 19.5 million in September 2024 and its second cash distribution of $ 12.0 million on October 24, 2024 relating to production at Manh Choh. In total, the Company has received $ 31.5 million in cash distributions from the Peak Gold JV since commencing the processing of Manh Choh ore in July 2024. There can be no guarantee that the Peak Gold JV will make future distributions to the Company. The Company believes that distributions are probable and that it will maintain sufficient liquidity to meet its working capital requirements, including repayment obligations of approximately $ 34.9 million on the Facility, for the next twelve months from the date of this report. Failure to pay current debt obligations will result in an event of default and the Company's debt would be due immediately or callable (See Note 13). The Company made principal payments towards the Facility of $ 2.0 million and $ 5.9 million in July 2024 and October 2024, respectively. If there are any unforeseen cash calls and if the Company elects to not fund a portion of its cash calls to the Peak Gold JV, its membership interest in the Peak Gold JV would be diluted. If the Company’s interest in the Peak Gold JV is diluted, the Company may not be able to fully realize its investment in the Peak Gold JV. Also, if no additional financing is obtained, the Company may not be able to fully realize its investment in the Contango Properties. The Company has limited financial resources and the ability of the Company to refinance current debt or arrange additional financing in the future will depend, in part, on the prevailing capital market conditions, the results achieved at the Peak Gold JV Property, as well as the market price of metals. The Company cannot be certain that financing will be available to the Company on acceptable terms, if at all. |
Note 4 - Summary of Significant
Note 4 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 4. Summary of Significant Accounting Policies Please see the Company’s Form 10-KT for the six-month ended December 31, 2023 for a summary of the Company's significant accounting policies, and below for changes to the Company's significant accounting polices since the time of that filing. Cash distributions from the Joint Venture Company. The Company applies distributions received from the Joint Venture Company as a return on investment and are deducted from the carrying amount of the investment balance as permitted under ASC 323 - Investments - Equity Method and Joint Ventures. The Company has elected the "Nature of the distribution approach" and the distributions from the Joint Venture Company represents a return on investment as the distributions are generated from the regular course of business earning and will be presented under operating activities on the Statements of Cashflows. Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by gold future pricing. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments. Non-designated Hedges. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to gold movements and the Company has elected not to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. |
Note 5 - Investment in the Peak
Note 5 - Investment in the Peak Gold JV | 9 Months Ended |
Sep. 30, 2024 | |
Investment Company [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 5. Investment in the Peak Gold JV The Company initially recorded its investment at the historical book value of the asset s contributed to the Peak Gold JV, which was approximately $ 1.4 million. As of September 30, 2024 the Company has contributed approximately $ 106.2 million to the Peak Gold JV and received a cash distribution of $ 19.5 million. As of September 30, 2024 the Company held a 30.0 % membership interest in the Peak Gold JV. The following table is a roll-forward of the Company’s investment in the Peak Gold JV as of September 30, 2024: Investment in Peak Gold, LLC Investment balance at September 30, 2023 $ 21,420,712 Investment in Peak Gold, LLC 7,350,000 Loss from equity investment in Peak Gold, LLC ( 706,307 ) Investment balance at December 31, 2023 $ 28,064,405 Investment in Peak Gold, LLC 15,450,000 Loss from equity investment in Peak Gold, LLC ( 140,253 ) Investment balance at March 31, 2024 $ 43,374,152 Investment in Peak Gold, LLC 11,790,000 Loss from equity investment in Peak Gold, LLC ( 695,633 ) Investment balance at June 30, 2024 $ 54,468,519 Investment in Peak Gold, LLC 4,050,000 Distributions received from Peak Gold, LLC ( 19,500,000 ) Income from equity investment in Peak Gold, LLC 28,525,857 Investment balance at September 30, 2024 $ 67,544,376 The following table presents the condensed unaudited results of operations for the Peak Gold JV for the three and nine month periods ended September 30, 2024 and 2023 in accordance with US GAAP: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Revenue $ 225,652,092 $ — $ 225,652,092 $ — Cost of sales ( 123,803,980 ) — ( 123,803,980 ) — Gross profit 101,848,112 — 101,848,112 — Other expenses ( 6,761,923 ) ( 4,574,980 ) ( 9,548,208 ) ( 7,955,691 ) Net Income/(Loss) $ 95,086,189 $ ( 4,574,980 ) $ 92,299,904 $ ( 7,955,691 ) The Company’s share of the Peak Gold JV’s results of operations for the three and nine months ended September 30, 2024 was income of approximately $ 28.5 million and $ 27.7 million, respectively . The Company’s share in the results of operations for the three and nine months ended September 30, 2023 was a loss of approximately $ 1.4 million and $ 2.4 million, respectively. The Peak Gold JV loss does not include any provisions related to income taxes as the Peak Gold JV is treated as a partnership for income tax purposes. As of September 30, 2024, the Company's cumulative investment in the Peak Gold JV exceeded its cumulative losses which allowed the Company to recognize its investment of $ 67.5 million. As of September 30, 2023, the Company’s share of the Peak Gold JV’s cumulative losses were $ 46.1 million. As of September 30, 2023, the Company's cumulative investment in the Peak Gold JV exceeded its cumulative losses which allowed the Company to recognize its investment of $ 21.4 million. The Company recognized all of its previously suspended losses of $ 4.3 million during the three months ended September 30, 2023. In previous quarters the Company's cumulative losses exceeded its cumulative investment in the Peak Gold JV and caused the equity method of accounting to be suspended, which resulted in suspended losses and an investment balance of $ 0 . In such a situation, the portion of cumulative loss that exceeds the investment is suspended and recognized against earnings in the future periods. |
Note 6 - Prepaid Expenses and O
Note 6 - Prepaid Expenses and Other | 9 Months Ended |
Sep. 30, 2024 | |
Prepaid Expenses and Other [Abstract] | |
Prepaid Expenses and other assets | 6. Prepaid Expenses and other assets The Company has prepaid expenses and other assets of $ 1,083,910 and $ 1,112,910 as of September 30, 2024 and December 31, 2023, respectively. Prepaid expenses primarily relate to prepaid insurance, surety bond deposits, and claim rentals. |
Note 7 - Net Loss Per Share
Note 7 - Net Loss Per Share | 9 Months Ended |
Sep. 30, 2024 | |
NET LOSS PER SHARE | |
Net Loss Per Share | 7. Net Loss Per Share A reconciliation of the components of basic and diluted net loss per share of common stock is presented below: Three Months Ended September 30, 2024 2023 Weighted Loss Weighted Loss Per Net Loss Shares Per Share Net Loss Shares Share Basic Net Loss per Share: Net loss attributable to common stock $ ( 9,712,416 ) 11,973,992 $ ( 0.81 ) $ ( 13,149,227 ) 8,935,863 $ ( 1.47 ) Diluted Net Loss per Share: Net loss attributable to common stock $ ( 9,712,416 ) 11,973,992 $ ( 0.81 ) $ ( 13,149,227 ) 8,935,863 $ ( 1.47 ) Nine Months Ended September 30, 2024 2023 Weighted Loss Weighted Loss Per Net Loss Shares Per Share Net Loss Shares Share Basic Net Loss per Share: Net loss attributable to common stock $ ( 48,755,408 ) 10,447,870 $ ( 4.67 ) $ ( 31,490,226 ) 8,009,699 $ ( 3.93 ) Diluted Net Loss per Share: Net loss attributable to common stock $ ( 48,755,408 ) 10,447,870 $ ( 4.67 ) $ ( 31,490,226 ) 8,009,699 $ ( 3.93 ) Options and warrants to purchase 866,875 shares of common stock of the Company were outstanding as of September 30, 2024, and 501,000 shares as of September 30, 2023. These options and warrants were not included in the computation of diluted earnings per share for the three and nine month periods ended September 30, 2024 and 2023 due to being anti-dilutive. |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Deficit) | 9 Months Ended |
Sep. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 8. Stockholders ’ Equity (Deficit) The Company has 45,000,000 shares of common stock authorized, and 15,000,000 authorized shares of preferred stock. As of September 30, 2024, 12,223,758 shares of common stock were outstanding, including 437,089 shares of unvested restricted stock. As of September 30, 2024, options and warrants to purchase 866,875 shares of common stock of the Company were outstanding. No shares of preferred stock have been issued. The remaining restricted stock outstanding will vest between October 2024 and January 2027. ATM Program On June 8, 2023, the Company entered into a Controlled Equity Offering SM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald & Co. (the “Agent”), pursuant to which the Company may offer and sell from time to time up to $ 40,000,000 of shares of the Company’s common stock through the Agent (the “ATM Program”). Sales of the Company's common stock under the ATM Program are made, pursuant to the Company’s effective shelf registration statement on Form S-3. Such sales may be made in sales deemed to be an “at the market offering” as defined in Rule 415(a)(4) promulgated under the Securities Act, including sales made directly on or through the New York Stock Exchange or on any other existing trading market for the Company’s common stock. The Company has no obligation to sell any of the common stock under the Sales Agreement and may at any time suspend or terminate the offering of its common stock pursuant to the Sales Agreement upon notice and subject to other conditions. The Company pays the Agent a commission of 2.75 % of the gross proceeds of the Shares sold through it under the Sales Agreement. The Company sold 87,815 shares during the nine-month period ended September 30, 2024 and 158,461 for the nine-month period ended September 30, 2023 of common stock pursuant to the Sales Agreement for net proceeds of approximately $ 1.8 million and $ 4.1 million, respectively. $ 32.8 million of the Company's common stock remains available for sale under the ATM Program as of September 30, 2024. Underwritten Offerings On June 10, 2024, the Company entered into an underwriting agreement (the "June 2024 Underwriting Agreement") with Canaccord Genuity LLC and Cormark Securities Inc. (collectively, the "June 2024 Underwriters"), relating to the underwritten public offering (the “ June 2024 Offering”) of 731,750 units (the "Units") of the Company at a price of $ 20.50 per Unit. Each Unit consists of (i) one share of the Company's common stock and (ii) one-half of one accompanying warrant. Each whole accompanying warrant is exercisable to purchase one share of the Company's common stock at a price of $ 26.00 per warrant, exercisable for a period of 36 months. The June 2024 Underwriters agreed to purchase the Units from the Company pursuant to the June 2024 Underwriting Agreement at a price of $ 19.37 per Unit, which included a 5.5 % underwriting discount. The fair value of each warrant was estimated as of the date of grant using the Black-Scholes option-pricing model (Level 2 of the fair value hierarchy) with the following weighted average assumptions used: (i) risk-free interest rate of 4.57 %; (ii) expected life of 3.0 years; (iii) expected volatility of 57.0 %; and (iv) expected dividend yield of 0 %. The net proceeds from the June 2024 Offering were $ 13.7 million after deducting underwriting discounts and commissions and offering expenses. The June 2024 Offering was made pursuant to the Company’s effective shelf registration statement on Form S-3. The June 2024 Offering closed on June 12, 2024 . On July 24, 2023, the Company entered into an underwriting agreement (the “July 2023 Underwriting Agreement”) with Maxim Group LLC and Freedom Capital Markets (collectively, the “July 2023 Underwriters”), relating to an underwritten public offering (the “July 2023 Offering”) of 1,600,000 shares (the “Underwritten Shares”) of the Company’s common stock at a price of $ 19.00 per share. The July 2023 Underwriters agreed to purchase the Underwritten Shares from the Company pursuant to the July 2023 Underwriting Agreement at a price of $ 17.77 per share, which included a 6.5 % underwriting discount. The net proceeds from the July 2023 Offering were $ 28.2 million after deducting underwriting discounts and commissions and offering expenses. The July 2023 Offering was made pursuant to the Company’s effective shelf registration statement on Form S-3. The July 2023 Offering closed on July 26, 2023. May 2023 Warrant Exercise In May 2023, the Company offered holders of its December 2022 Warrants and January 2023 Warrants with an original exercise price of $ 25.00 , (collectively, “the Original Warrants”) the opportunity to exercise those warrants at a reduced exercise price of $ 22.00 (the “Modified Warrants”) and receive shares of the Company's common stock, by paying the reduced exercise price in cash and surrendering the original warrants on or before May 9, 2023. A total of 313,000 Original Warrants were exercised resulting in total cash to the Company of $ 6.9 million (the “Warrant Exercise Proceeds”) and the issuance of 313,000 shares of Company common stock upon such exercise. Such shares of common stock were issued in reliance on an exemption from registration under the Securities Act, pursuant to Section 4(a)(2) thereof. In connection with the accelerated exercise of the Original Warrants, the Company agreed to issue new warrants to purchase 313,000 shares of Company common stock at $ 30.00 per share to the exercising holders in the amount of the respective December 2022 Warrants and January 2023 Warrants that were exercised by such holders (the “May 2023 Warrants”). Consistent with the accounting guidance for modifications of a freestanding equity-classified warrant as a part of an equity offering, the Company recorded the excess in fair value of the Modified Warrants over the Original Warrants as an equity issuance cost, of approximately $ 383,000 . The fair value of the Modified Warrants and the Original Warrants were calculated as of May 9, 2023 with the following weighted average assumptions used: (i) risk-free interest rate of 4.81 %; (ii) expected life of 1 year; (iii) expected volatility of 42.5 %; and (iv) expected dividend yield of 0 %. The May 2023 Warrants were classified within equity and the Warrant Exercise Proceeds were allocated to the May 2023 Warrants based on their relative fair value. The fair value of each of the May 2023 Warrants was estimated as of the date of grant using the Black-Scholes option-pricing model (Level 2 of the fair value hierarchy) with the following weighted average assumptions used: (i) risk-free interest rate of 4.81 %; (ii) expected life of 1.5 year s ; (iii) expected volatility of 43.7 %; and (iv) expected dividend yield of 0 %. January 2023 Private Placement On January 19, 2023, the Company completed the issuance and sale of an aggregate of 117,500 shares (the “January 2023 Shares”) of the Company’s common stock, for $ 20.00 per share, and warrants (the “January 2023 Warrants”) entitling each purchaser to purchase shares of common stock for $ 25.00 per share (the “January 2023 Warrant Shares” and together with the January 2023 Shares and the January 2023 Warrants, the “January 2023 Securities”), in a private placement (the “January 2023 Private Placement”) to certain accredited investors (the “January 2023 Investors”) pursuant to Subscription Agreements (the “January 2023 Subscription Agreements”), dated as of January 19, 2023 between the Company and each of the January 2023 Investors. Pursuant to the January 2023 Warrants between the Company and each of the January 2023 Investors, the January 2023 Warrants are exercisable, in full or in part, at any time until the second anniversary of their issuance, at an exercise price of $ 25.00 per share of common stock. Net proceeds from the January 2023 Private Placement totaled approximately $ 2.3 million and were used to fund the Company’s exploration and development program and for general corporate purposes. The January 2023 Securities sold were not registered under the Securities Act, but the January 2023 Shares and the January 2023 Warrant Shares are subject to a Registration Rights Agreement allowing the shares to be registered by the holders at a future date. |
Note 9 - Property & Equipment
Note 9 - Property & Equipment | 9 Months Ended |
Sep. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property & Equipment | 9. Property & Equipment The table below sets forth the book value by type of fixed asset as well as the estimated useful life: Asset Type Estimated September 30, 2024 December 31, 2023 Mineral properties N/A - Units of Production $ 50,766,767 $ 11,700,726 Land Not Depreciated 87,737 87,737 Buildings and improvements (years) 20 - 39 1,455,546 1,455,546 Machinery and equipment (years) 3 - 10 453,076 287,635 Vehicles (years) 5 135,862 135,862 Computer and office equipment (years) 5 39,402 23,571 Furniture & fixtures (years) 5 2,270 2,270 Less: Accumulated depreciation and amortization ( 333,109 ) ( 244,864 ) Less: Accumulated impairment ( 122,171 ) ( 122,136 ) Property & Equipment, net $ 52,485,380 $ 13,326,347 |
Note 10 - Stock-Based Compensat
Note 10 - Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation On September 15, 2010, the Company's board of directors adopted the Contango ORE, Inc. Equity Compensation Plan (the “2010 Plan”). On November 10, 2022, the stockholders of the Company approved and adopted the Second Amendment (the “Second Amendment”) to the Contango ORE, Inc. Amended and Restated 2010 Equity Compensation Plan (as amended, the “Amended Equity Plan”) which increased the number of shares of common stock that the Company may issue under the Amended Equity Plan by 600,000 shares. Under the Amended Equity Plan, the board may issue up to 2,600,000 shares of common stock and options to officers, directors, employees or consultants of the Company. Awards made under the Amended Equity Plan are subject to such restrictions, terms and conditions, including forfeitures, if any, as may be determined by the board. On November 14, 2023, the stockholders of the Company approved and adopted the 2023 Omnibus Incentive Plan (the “2023 Plan”) (together with the Amended Equity Plan referred to as the “Equity Plans”), which replaces the 2010 Plan with respect to new grants by the Company. Shares available for grant under the 2023 Plan consist of 193,500 shares of common stock plus (i) any shares remaining available for grant under the 2010 Plan ( 458,376 shares as of September 30, 2024), (ii) unexercised shares subject to appreciation awards (i.e. stock options or other stock-based awards based on the appreciation in value of a share of the Company’s common stock) granted under the 2010 Plan that expire, terminate, or are canceled for any reason without having been exercised in full, and (iii) shares subject to awards that are not appreciation awards granted under the 2010 Plan that are forfeited for any reason. As of September 30, 2024, there were 437,089 shares of unvested restricted common stock outstanding and 100,000 options to purchase shares of common stock issued under the Equity Plans. Stock-based compensation expense for the three and nine months ended September 30, 2024 was $ 0.7 million and $ 2.0 million, respectively. Stock-based compensation expense for the three and nine months ended September 30, 2023 was $ 0.7 million and $ 2.1 million, respectively. The amount of compensation expense recognized does not reflect cash compensation actually received by the individuals during the current period, but rather represents the amount of expense recognized by the Company in accordance with US GAAP. All restricted stock grants are expensed over the applicable vesting period based on the fair value at the date the stock is granted. The grant date fair value may differ from the fair value on the date the individual’s restricted stock actually vests. Restricted Stock. Under the Equity Plans, the Compensation Committee of the Company's board of directors (the “Compensation Committee”) shall determine to what extent, and under what conditions, the Participant shall have the right to vote shares of Stock Awards and to receive any dividends or other distributions paid on such shares during the restriction period. The terms and applicable voting and dividend rights are outlined in the individual restricted stock agreements. All restricted stock grants are expensed over the applicable vesting period based on the fair value at the date the stock is granted. The grant date fair value may differ from the fair value on the date the individual’s restricted stock actually vests. The total grant date fair value of the restricted stock granted in the nine months ended September 30, 2024 and September 30, 2023 was $ 2.6 million and $ 2.4 million, respectively. As of September 30, 2024, there were 437,089 shares of such restricted stock that remained unvested and the total compensation cost related to nonvested restricted share awards not yet recognized was $ 2,383,848 . The remaining costs are expected to be recognized over the remaining vesting period of the awards. Below table indicates the unvested restricted stock balance as of September 30, 2024 and December 31, 2023: Number of restricted shares unvested Balance - January 1, 2024 433,528 Restricted shares granted 159,150 Restricted shares vested ( 155,589 ) Balance - September 30, 2024 437,089 Balance - July 1, 2023 429,376 Restricted shares granted 10,819 Restricted shares vested ( 6,667 ) Balance - December 31, 2023 433,528 Stock Options. Under the Equity Plans, options granted must have an exercise price equal to or greater than the market price of the Company’s common stock on the date of grant. The Company may grant key employees both incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, and stock options that are not qualified as incentive stock options. Stock option grants to non-employees, such as directors and consultants, may only be stock options that are not qualified as incentive stock options. Options generally expire after five years . Upon option exercise, the Company’s policy is to issue new shares to option holders. The Company applies the fair value method to account for stock option expense. Under this method, cash flows from the exercise of stock options resulting from tax benefits in excess of recognized cumulative compensation cost (excess tax benefits) are classified as financing cash flows. See Note 4 - Summary of Significant Accounting Policies from Company's Form 10-KT for the six-month period ended December 31, 2023. All employee stock option grants are expensed over the stock option’s vesting period based on the fair value at the date the options are granted. The fair value of each option is estimated as of the date of grant using the Black-Scholes options-pricing model. Expected volatilities are based on the historical weekly volatility of the Company’s stock with a look-back period equal to the expected term of the options. The expected dividend yield is zero as the Company has never declared and does not anticipate declaring dividends on its common stock. The expected term of the options granted represents the period of time that the options are expected to be outstanding. The simplified method is used to estimate the expected term, due to the lack of historical stock option exercise activity. The risk-free interest rate is based on U.S. Treasury bills with a duration equal to or close to the expected term of the options at the time of grant. There were no newly vested stock options for the nine month period ended September 30, 2024 or for the nine month period ended September, 2023. As of September 30, 2024, the total unrecognized compensation cost related to nonvested stock options was $ 0 . As of September 30, 2024, the stock options had a weighted average remaining life of 0.31 years. A summary of the status of stock options granted under the Equity Plans as of September 30, 2024 and changes during the n ine months then ended, is presented in the table below: Nine Months Ended September 30, 2024 Shares Under Weighted Outstanding as of December 31, 2023 100,000 $ 14.50 Granted — Exercised — Forfeited — Outstanding at the end of the period 100,000 $ 14.50 Aggregate intrinsic value $ 492,000 Exercisable, end of the period 100,000 Aggregate intrinsic value $ 492,000 Available for grant, end of period 458,376 Weighted average fair value per share of options $ — |
Note 11 - Commitments and Conti
Note 11 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Tetlin Lease . The Tetlin Lease had an initial ten-year term beginning July 2008 which was extended for an additional ten years to July 15, 2028, and for so long thereafter as the Peak Gold JV initiates and continues to conduct mining operations on the Tetlin Lease. Pursuant to the terms of the Tetlin Lease, the Peak Gold JV is required to spend $ 350,000 per year until July 15, 2028 in exploration costs. The Company’s exploration expenditures through the 2023 exploration program have satisfied this requirement because exploration funds spent in any year in excess of $ 350,000 are credited toward future years’ exploration cost requirements. Additionally, should the Peak Gold JV derive revenues from the properties covered under the Tetlin Lease, the Peak Gold JV is required to pay the Tetlin Tribal Council a production royalty ranging from 3.0 % to 5.0 %, depending on the type of metal produced and the year of production. In lieu of a $ 450,000 cash payment to the Peak Gold JV from the Tetlin Tribal Council to increase its production royalty by 0.75 %, the Peak Gold JV agreed to credit the $ 450,000 against future production royalty and advance minimum royalty payments due to the Tetlin Tribal Council under the lease once production begins. Until such time as production royalties begin, the Peak Gold JV must pay the Tetlin Tribal Council an advance minimum royalty of approximately $ 75,000 per year, and subsequent years are escalated by an inflation adjustment. Production commenced in July 2024 and the Peak Gold JV has started to satisfy the production royalty obligations pursuant to the terms of the Tetlin Lease. Gold Exploration. The Company’s Triple Z, Eagle/Hona, Shamrock, Willow, and Lucky Shot claims are all located on State of Alaska lands. The annual claim rentals on these projects vary based on the age of the claims, and are due and payable in full by November 30 of each year. Annual claims rentals for the 2023-2024 assessment year totaled $ 362,465 . The Company paid the current year claim rentals in October 2023. The associated rental expense is amortized over the rental claim period, September 1 through August 31 of each year. As of September 30, 2024, the Peak Gold JV had met the annual labor requirements for the State of Alaska acreage for the next four years, which is the maximum period allowable by Alaska law. Lucky Shot Property . With regard to the Lucky Shot Property, the Company will be obligated to pay CRH Funding II PTE. LTD, a Singapore private limited corporation (“CRH”), additional consideration if production on the Lucky Shot Property meets two separate milestone payment thresholds. If the first threshold of (1) an aggregate “mineral resource” equal to 500,000 ounces of gold or (2) production and receipt by the Company of an aggregate of 30,000 ounces of gold (including any silver based on a 1:65 gold:silver ratio) is met, then the Company will pay CRH $ 5 million in cash and $ 3.75 million in newly issued shares of Contango common stock. If the second threshold of (1) an aggregate “mineral resource” equal to 1,000,000 ounces of gold or (2) production and receipt by the Company of an aggregate of 60,000 ounces of gold (including any silver based on a 1:65 gold:silver ratio) is met, then the Company will pay CRH $ 5 million in cash and $ 5 million in newly issued shares of Contango common stock. If payable, the additional share consideration will be issued based on the 30-day volume. Royal Gold Royalties . Royal Gold currently holds a 3.0 % overriding royalty on the Tetlin Lease and certain state mining claims. Royal Gold also holds a 28.0 % net smelter returns silver royalty on all silver produced from a defined area within the Tetlin Lease. Pursuant to the CORE Purchase Agreement, the Company received a prepayment of $ 1,200,000 for its direct share of silver royalty payments from KG Mining. If the aggregate amount of silver royalty payments exceeds $ 1,200,000 , then beginning with the following calendar quarter such point, the Company shall receive within 45 days after the last day of each such calendar quarter, an amount equal to the product of (i) the amount of the silver royalty earned by the Company pursuant to the Omnibus Royalty Agreement from and after the point at which the silver royalty became greater than $ 1,200,000 and (ii) CORE Alaska's weighted average interest in the Company during such calendar quarter. The Peak Gold JV commenced production in July 2024 and therefore the Company has started to drawdown the $ 1,200,000 prepayment into income. CIRI Lease Agreement. JT Mining Inc. entered into a lease agreement effective May 17, 2019 with CIRI and shall pay the sum of $ 150,000 on the Fifth through Ninth anniversaries of the effective date, provided that JT Mining Inc.'s obligations to make such payments shall terminate on the commencement of Commercial Production as defined under the agreement. A Commercial Production decision has not been made to date. CIRI Exploration Agreement. JT Mining Inc. entered into an exploration agreement effective July 1, 2023 with CIRI and on each anniversary of the effective date thereafter during the 4 year term shall pay to CIRI an amount equal to $ 25,000 as consideration for grant of the rights under the agreement and for the purpose.of covering CIRI's administrative costs associated with exploration activities. Mining Lease and Option to Purchase Agreement Amanita Project. Avidian Alaska entered into a 15 year lease agreement with an effective date of July 18, 2015 with Tanya Stolz. Avidian Alaska shall pay minimum annual lease payments as outlined under the schedule in section 4.1 of the agreement. Avidian Alaska's obligation for July 18, 2025 is $ 100,000 and will increase by $ 10,000 per year, with a final payment on July 18, 2030 for $ 130,000 . The minimum payments will be credited against Avidian Alaska's royalty payment obligations under the agreement and the Company is currently in good standing. Retention Agreements. In February 2019, the Company entered into retention agreements with its then Chief Executive Officer, Brad Juneau, for payments in the amount of $ 1,000,000 upon the occurrence of certain conditions (collectively, the "Retention Agreement"). The Retention Agreement is triggered upon a change of control (as defined in the applicable Retention Agreement), provided that the recipient is employed by the Company when the change of control occurs. On February 6, 2020, the Company entered into amendments to the Retention Agreement to extend the term of the change of control period from August 6, 2020 until August 6, 2025. Mr. Juneau will receive a payment of $ 1,000,000 , upon a change of control that takes place prior to August 6, 2025. On June 10, 2020, the Company entered into a retention payment agreement with Rick Van Nieuwenhuyse, the Company’s President and Chief Executive Officer, providing for a payment in an amount of $ 350,000 upon the occurrence of certain conditions (the "Retention Payment Agreement"). The Retention Payment Agreement is triggered upon a change of control (as defined in the Retention Payment Agreement) which occurs on or prior to August 6, 2025, provided that Mr. Van Nieuwenhuyse is employed by the Company when the change of control occurs. Employment Agreement . Effective July 11, 2023, Michael Clark was appointed to serve as Executive Vice President, Finance of the Company. On January 1, 2024, he was appointed as Chief Financial Officer and Secretary of the Company. Mr. Clark performs the functions of the Company’s principal financial officer. Pursuant to his employment agreement (the "Employment Agreement"), Mr. Clark receives a base salary of $ 300,000 per annum. Mr. Clark is entitled to receive short-term incentive plan and long-term incentive plan bonuses and awards that will be paid in the form of a combination of cash, restricted stock and options, which will be set forth in plans and agreements adopted, or to be adopted, by the Company's board of directors. He will also receive 12 months of his regular base salary, all bonus amounts paid in the 12 months preceding the termination, and reimbursement for continued group health insurance coverage for 12 months following the termination or the date he becomes eligible for alternative coverage through subsequent employment as severance benefits in the event that his employment with the Company is terminated by the Company other than for just cause or he resigns due to a material, uncured breach of the Employment Agreement by the Company. He is also entitled to enhanced severance benefits if he terminates his employment within 30 days following a change of control. Any payment of severance benefits to him under the Employment Agreement is conditioned on his timely agreement to, and non-revocation of, a full and final release of legal claims in favor of the Company. Employment Agreement . On September 16, 2024, the Company entered into an employment agreement with Rick Van Nieuwenhuyse, the Company’s President and Chief Executive Officer (the “CEO Employment Agreement”).The CEO Employment Agreement superseded the employment offer letter with Mr. Van Nieuwenhuyse, dated December 31, 2019, as amended and modified. Pursuant to the CEO Employment Agreement, Mr. Van Nieuwenhuyse will continue to receive a base salary of $ 500,000 per annum. Mr. Van Nieuwenhuyse will continue to be entitled to receive short-term incentive plan and long-term incentive plan bonuses and awards that will be paid in the form of a combination of cash, restricted stock and options, which will be set forth in plans and agreements adopted, or to be adopted, by the Board. He will also receive 12 months of his regular base salary, all bonus amounts paid in the 12 months preceding the termination, and reimbursement for continued group health insurance coverage for 12 months following the termination or the date he becomes eligible for alternative coverage through subsequent employment as severance benefits in the event that his employment with the Company is terminated by the Company other than for just cause or he resigns due to a material, uncured breach of the Employment Agreement by the Company. He is also entitled to enhanced severance benefits if he terminates his employment within 30 days following a change of control. Any payment of severance benefits to him under the Employment Agreement is conditioned on his timely agreement to, and non-revocation of, a full and final release of legal claims in favor of the Company Short Term Incentive Plan . The Compensation Committee of the Company's board of directors (the “Compensation Committee”) adopted a Short-Term Incentive Plan (the “STIP”) for the benefit of its executive officers. Pursuant to the terms of the STIP, the Compensation Committee establishes performance goals at the beginning of each year and then at the end of the year will evaluate the extent to which, if any, the officers meet such goals. The STIP provides for a payout ranging between 0 % and 200 % of an officer’s annual base salary, depending on what performance rating is achieved. Amounts due under the STIP can be payable 50.0 % in cash and 50.0 % in the form of restricted stock granted under the 2023 Plan, subject to the terms of the 2023 Plan. In addition, in the event of a Change of Control (as defined in the Equity Plans) during the term of the STIP, the Compensation Committee, in its sole and absolute discretion, may make a payment to its officers in an amount up to 200.0 % of their then annual base salary, payable in cash, shares of common stock of the Company under the 2023 Plan or a combination of both, as determined by the Compensation Committee, not later than 30 days following such Change of Control. Committee for Safe Communities Complaint. On October 20, 2023, the Committee for Safe Communities, an Alaskan non-profit corporation inclusive of this same group of objectors and formed for the purpose of opposing the project, filed suit in the Superior Court in Fairbanks, Alaska against the State of Alaska Department of Transportation and Public Facilities ("DOT"). The Complaint seeks injunctive relief against the DOT with respect to its oversight of the Peak Gold JV's ore haul plan. The Complaint alleges that the DOT has approved a haul route and trucking plan that violates DOT regulations, DOT's actions have created an unreasonable risk to public safety constituting an attractive public nuisance, and DOT has aided and abetted the offense of negligent driving. On November 2, 2023, the plaintiff filed a motion for a preliminary injunction against the DOT and sought expedited consideration of its motion. If granted, the motion could impact the Peak Gold JV's ore haul plans. On November 9, 2023, the Court denied the plaintiff's motion for expedited consideration. On November 15, 2023, the Court granted the Peak Gold JV's motion to intervene. On January 15, 2024, the Peak Gold JV and DOT jointly moved for judgment on the pleadings and to stay all discovery. On May 14, 2024, the Court issued an Order denying the plaintiff's motion for preliminary injunction and staying discovery. On June 24, 2024, the Court issued an Order granting judgment on the pleadings as to three of the four claims for relief alleged in the Complaint and denying relief as to the claim for public nuisance. The Order further lifted the stay of discovery. On July 3, 2024, the DOT filed motion for reconsideration as to the Court's Order on the motion for judgment on the pleadings, which the Peak Gold JV joined. On September 13, 2024, the Court entered an Order denying this motion. The case is set for trial on August 11, 2025. Village of Dot Lake Complaint. On July 1, 2024, the Village of Dot Lake, a federally recognized Indian Tribe, located approximately 50 miles from the Manh Choh mine on the ore haul route along the Alaska Highway ("Dot Lake"), filed a Complaint in the U.S. District Court for the District of Alaska against U.S. Army Corps of Engineers (the "Corps") and Lt. General Scott A. Spellmon, in his official capacity as Chief of Engineers and Commanding General of the Corps. The Complaint seeks declaratory and injunctive relief based on the Corps' alleged failure to consult with Dot Lake and to undertake an adequate environmental review with respect to the Corps' issuance in September 2022 of a wetlands disturbance permit in connection with the overall permitting of the Manh Choh mine as to approximately 5 acres of wetlands located on Tetlin Village land. Peak Gold is not named as a defendant in the Complaint and, on August 20, 2024, the Peak Gold JV moved to intervene in the action, which Dot Lake has opposed. On October 10, 2024, the Court granted intervention to the Peak Gold JV. |
Note 12 - Income Taxes
Note 12 - Income Taxes | 9 Months Ended |
Sep. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The Company recognized a full valuation allowance on its deferred tax asset as of September 30, 2024 and December 31, 2023 and has recognized $ 507,880 of federal and $ 210,947 of state income tax expense for the three and nine months ended September 30, 2024 and $ 0 income tax expense for three and nine months ended September 30, 2023. The effective tax rate was ( 1.51 )% for the three and nine months ended September 30, 2024 and 0 % for the three and nine months ended September 30, 202 3. The Company recognized a deferred tax liability of $ 2,330,577 on acquisition of the Exploration and Evaluation assets for the period ended September 30, 2024. The Company has historically had a full valuation allowance, which resulted in no net deferred tax asset or liability appearing on its statement of financial position. The Company recorded this valuation allowance after an evaluation of all available evidence (including the Company's history of net operating losses) that led to a conclusion that, based upon the more-likely-than-not standard of the accounting literature, these deferred tax assets were unrecoverable. The Company is forecasting a book loss and an immaterial amount of taxable income due to the limitation of federal and Alaska NOLs to 80 % of taxable income for its fiscal year end, December 31, 2024. The Company reviews its tax positions quarterly for tax uncertainties. The Company did no t have any uncertain tax positions as of September 30, 2024 or December 31, 2023. |
Note 13 - Debt
Note 13 - Debt | 9 Months Ended |
Sep. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 13. Debt The table below shows the components of Debt, net as of September 30, 2024 and December 31, 2023 : September 30, December 31, Secured Debt Facility Principal amount $ 58,000,000 $ 30,000,000 Unamortized debt discount ( 1,627,435 ) ( 2,411,532 ) Unamortized debt issuance costs ( 2,082,496 ) ( 2,394,168 ) Debt, net $ 54,290,069 $ 25,194,300 Convertible Debenture Principal amount $ 20,000,000 $ 20,000,000 Unamortized debt discount ( 344,925 ) ( 414,854 ) Unamortized debt issuance costs ( 82,800 ) ( 99,587 ) Debt, net $ 19,572,275 $ 19,485,559 Total Debt, net $ 73,862,344 $ 44,679,859 Less current portion $ 34,900,000 $ 7,900,000 Debt non-current portion, net $ 38,962,344 $ 36,779,859 Secured Credit Facility On May 17, 2023, the Company entered into a credit and guarantee agreement (the “Credit Agreement”), by and among CORE Alaska, LLC as the borrower, each of the Company, LSA, Contango Minerals, as guarantors, each of the lenders party thereto from time to time, ING Capital LLC (“ING”), as administrative agent for the lenders, and Macquarie Bank Limited (“Macquarie”), as collateral agent for the secured parties. The Credit Agreement provides for a senior secured loan facility (the “Facility”) of up to US$ 70 million, of which $ 65 million is committed in the form of a term loan facility and $ 5 million is uncommitted in the form of a liquidity facility. The Credit Agreement will mature on December 31, 2026 (the “Maturity Date”) and will be repaid via quarterly repayments over the life of the loan. The Facility has an upfront fee and a production linked arrangement fee based upon the projected total production of gold ounces in the base case financial model delivered on the closing date, payable quarterly based on attributable production, with any balance due upon the maturity or termination of the Credit Agreement. The Credit Agreement is secured by all the assets and properties of the Company and its subsidiaries, including the Company’s 30 % interest in Peak Gold, LLC, but excluding the Company’s equity interests of LSA in respect of th e Lucky Shot mine, in addition to the assets of HighGold and Avidian Alaska. As a condition precedent to the second borrowing, the Company wa s required to hedge 124,600 ounces of its attributable gold production from Manh Choh. On August 2, 2023, CORE Alaska entered into a series of hedging agreements with ING and Macquarie for the sale of an aggregate of 124,600 ounces of gold at a weighted average price of $ 2,025 per ounce, which satisfied the condition of the second borrowing. The hedge agreements have delivery obligations beginning in July 2024 and ending in December 2026. The Company commenced delivery into those hedge agreements in July 2024. See Note 14 - Derivatives and Hedging Activities below and the Company's Form 10-KT for the six-month period ended December 31, 2023. Term loans, which can be made quarterly are to be used only to finance cash calls to the Peak Gold JV, fund the debt service reserve account, pay corporate costs in accordance with budget and base case financial model and fees and expenses in connection with the loan. Liquidity loans, which can be made once a month, are to be used for cost overruns. Any outstanding liquidity loans must be repaid on July 31, 2025. As of September 30, 2024, the Company did no t have any liquidity loans outstanding. Loans under the Facility can be Base Rate loans at the Base Rate plus the Applicable Margin or Secured Overnight Financing Rate (“SOFR”) loans at the three month adjusted term SOFR plus the Applicable Margin. The type of loan is requested by the borrower at the time of the borrowing and the type loan may be converted. The “Base Rate” is the highest of Prime Rate, Federal Funds Rate plus 0.50 % or Adjusted Term SOFR for one month plus 1 %. “Adjusted Term SOFR” is Term SOFR plus a SOFR Adjustment of 0.15 % per annum. “Term SOFR” is the secured overnight financing rate as administered by the Term SOFR Administrator. The “Applicable Margin” is (i) 6.00 % per annum prior to the completion date for the Manh Choh Project and (ii) 5.00 % per annum thereafter, which will be payable quarterly. The current Applicable Margin is 6 %. Interest is payable commencing on the date of each loan and ending on the next payment date. The interest payment dates prior to November 1, 2025 are the last day of July, October, January and April; thereafter the payment dates are the last day of March, June, September and December. The Company also will pay commitment fee on average daily unused borrowings equal to a rate of 40 % of the Applicable Margin. The commitment fee is payable in arrears on each interest payment date with the final on the commitment termination date, which is 18 months after the closing date of May 17, 2023. As of September 30, 2024, the Company had unused borrowing commitments of $ 5.0 million. Borrowings under the Facility carried an original issue discount of $ 2.3 million and debt issuance costs of approximately $ 1.6 million. As of September 30, 2024, the unamortized discount and issuance costs were $ 1.7 million and $ 2.1 million, respectively, and the carrying amount, net of the unamortized discount and issuance costs was $ 54.3 million. As of December 31, 2023, the unamortized discount and issuance costs were $ 2.4 million and $ 2.4 million, respectively and the carrying amount, net of the unamortized discount and issuance costs was $ 25.2 million. The fair value of the debt (Level 2) as of September 30, 2024 and December 31, 2023 was $ 58.0 million and $ 30.0 million, respectively. The Company recognized interest expense totaling $ 7.2 million related to this debt for the nine months ended September 30, 2024 (inclusive of approximately $ 4.3 million of contractual interest, and approximately $ 2.9 million related to the amortization of the discount and issuance fees). The Company recognized interest expense totaling $ 0.5 million related to this debt for the nine months ended September 30, 2023 (inclusive of approximately $ 437,000 of contractual interest, and approximately $ 94,000 related to the amortization of the discount and issuance fees). The effective interest rate of the term loan facility was 11.56 % as of September 30, 2024 and 11.58 % as of December 31, 2023. As of September 30, 2024 and December 31, 2023, the effective interest rate for the amortization of the discount and issuance costs was 8.6 % and 5.6 %, respectively. The Credit Agreement contains representations and warranties and affirmative and negative covenants customary for credit facilities of this type, including limitations on the Company and its subsidiaries with respect to indebtedness, liens, mergers, consolidations, liquidations and dissolutions, sales of all or substantially all assets, transactions with affiliates and entry into hedging arrangements. The Credit Agreement, as amended also requires the Company to maintain, as of the last day of each fiscal quarter, (i) a historical debt service coverage ratio of no less than 1.30 to 1.00 (not applicable until commercial production has been declared which has not occurred to date), (ii) a projected debt service coverage ratio until the Maturity Date of no less than 1.30 to 1.00; (iii) a loan life coverage ratio until the Maturity Date of no less than 1.40 to 1.00; (iv) a discounted present value cash flow coverage ratio until the Manh Choh gold project termination date of no less than 1.70 to 1.00; and (v) a reserve tail (i.e., gold production) ratio until the Maturity Date of no less than 25 %. The Credit Agreement also includes customary events of default, including failure to pay principal, interest or fees when due, failure to comply with covenants, any representation or warranty made by the Company or any of its material subsidiaries being false in any material respect, default under certain other material indebtedness, certain insolvency or receivership events affecting the Company or any of its material subsidiaries, certain ERISA events, material judgments and a change in control, in each case, subject to cure periods and thresholds where customary. The Company is also required to maintain a minimum cash balance of $ 2 million. As of September 30, 2024, the Company was in compliance with, or has received waiver or consent from ING and Macquarie, all of the required debt covenants. The waivers and consents primarily related to the Company's entry into transactions that required conditions to be modified under the Credit Agreement. As of September 30, 2024, the Company had drawn a total of $ 60.0 million on the Facility. The Company made a $ 2.0 million principal repayment in July 2024 and paid a $ 5.9 million principal repayment in October 2024. The Company is scheduled to repay $ 42.6 million of principal in 2025 and the remaining $ 9.5 million of principal on a quarterly basis through December 31, 2026. In connection with entering into the Credit Agreement, the Company entered into a mandate lender arrangement fee letter (the “MLA Fee Letter”) with ING and Macquarie (collectively, the “Mandated Parties”) and a production linked arrangement fee letter (the “PLA Fee Letter”) with ING. Pursuant to the MLA Fee Letter, the Company paid the Mandated Parties on the date of the initial disbursement at the initial closing an upfront fee, calculated based on the principal amount of the Facility. Additionally, the Company paid the Mandated Parties an initial disbursement upfront fee, calculated based on the initial disbursement of $ 10 million. Pursuant to the PLA Fee Letter, the Company will pay ING a production linked arranging fee based on projected total production over the life of the Facility, as well as an agency fee for consideration of acting as administrative agent and collateral agent. Convertible Debenture On April 26, 2022, the Company closed on a $ 20,000,000 unsecured convertible debenture (the “Debenture”) with Queen’s Road Capital Investment, Ltd. (“QRC”). The Company used the proceeds from the sale of the Debenture to fund commitments to the Peak Gold JV, the exploration and development at its Lucky Shot Property, and for general corporate purposes. In connection with the closing of the Credit Agreement, the Company entered into a letter agreement with QRC (the “Letter Agreement”) which amended the terms of the Debenture. In accordance with the Letter Agreement, QRC acknowledged that the Debenture would be subordinate to the loans under the Credit Agreement, and acknowledged that the Company entering into the loans under the Credit Agreement would not constitute a breach of the negative covenants of the Debenture. QRC also waived its put right in respect of the Debenture that would require Contango to redeem the Debenture in whole or in part upon the completion of a secured financing or a change of control. In consideration for QRC entering into the Letter Agreement, the Company agreed to amend the interest rate of the Debenture from 8 % to 9 %. In accordance with the Letter Agreement the interest payment dates were modified to be the last business day of July, October, January, and April, prior to November 1, 2025 and thereafter the last business day of March, June, September, and December. The maturity date also changed from April 26, 2026 to May 26, 2028. The Debenture currently bears interest at 9 % per annum, payable quarterly, with 7 % paid in cash and 2 % paid in shares of common stock issued at the market price at the time of payment based on a 20-day volumetric weighted average price (“VWAP”). The Debenture is unsecured. QRC may convert the Debenture into common stock at any time at a conversion price of $ 30.50 per share (equivalent to 655,738 shares), subject to adjustment. The Company may redeem the Debenture after the third anniversary of issuance at 105 % of par, provided that the market price (based on a 20-day VWAP) of the Company’s common stock is at least 130 % of the conversion price. In connection with the issuance of the Debenture, the Company agreed to pay an establishment fee of 3 % of the Debenture face amount. In accordance with the terms of the related investment agreement (the "Investment Agreement"), QRC elected to receive the establishment fee in shares of common stock valued at $ 24.82 per share, for a total of 24,174 shares. The establishment fee shares were issued to QRC pursuant to an exemption from registration under Regulation S. In connection with the Investment Agreement, QRC entered into an investor rights agreement with the Company in connection with the issuance of the Debenture. The investor rights agreement contains provisions that require QRC and its affiliates, while they own 5 % or more of our outstanding common stock, to standstill, not to participate in any unsolicited or hostile takeover of the Company, not to tender its shares of common stock unless the Company’s board recommends such tender, to vote its shares of common stock in the manner recommended by the Company’s board to its stockholders, and not to transfer its shares of common stock representing more than 0.5 % of outstanding shares without notifying the Company in advance, whereupon the Company will have a right to purchase those shares. The Debenture carried an original issue discount of $ 0.6 million and debt issuance costs of approximately $ 0.2 million. As of September 30, 2024 and December 31, 2023, the unamortized discount and issuance costs were $ 0.4 million and $ 0.5 million, respectively. The carrying amount of the debt at September 30, 2024 and December 31, 2023, net of the unamortized discount and issuance costs was $ 19.6 million and $ 19.5 million, respectively. The fair value of the Debenture (Level 2) as of September 30, 2024 and December 31, 2023 was $ 20.0 million. The Company recognized interest expense totaling $ 1.5 million related to this debt for the nine months ended September 30, 2024 (inclusive of approximately $ 1.4 million of contractual interest, and approximately $ 0.1 million related to the amortization of the discount and issuance fees). The Company recognized interest expense totaling $ 1.4 million related to this debt for the nine months ended September 30, 2023 (inclusive of approximately $ 1.3 million of contractual interest, and approximately $ 0.1 million related to the amortization of the discount and issuance fees). The effective interest rate of the Debenture is the same as the stated interest rate, 9.0 %. The effective interest rate for the amortization of the discount and issuance costs as of September 30, 2024 and December 31, 2023 was 0.6 % and 0.6 %, respectively. The Company reviewed the provisions of the debt agreement to determine if the agreement included any embedded features and concluded that the change of control provisions within the debt agreement met the characteristics of a derivative and required bifurcation and separate accounting. The fair value of the identified derivative was determined to be de minimis at September 30, 2024 and December 31, 2023 as the probability of a change of control was negligible as of those dates. For each subsequent reporting period, the Company will evaluate each potential derivative feature to conclude whether or not they qualify for derivative accounting. Any derivatives identified will be recorded at the applicable fair value as of the end of each reporting period. |
Note 14 - Derivatives and Hedgi
Note 14 - Derivatives and Hedging Activities | 9 Months Ended |
Sep. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 14. Derivatives and Hedging Activities On August 2, 2023, CORE Alaska, a subsidiary of the Company, pursuant to an ISDA Master Agreement entered into with ING Capital Markets LLC (the “ING ISDA Master Agreement”) and an ISDA Master Agreement entered into with Macquarie Bank Limited (the “Macquarie ISDA Master Agreement”), in accordance with its obligations under the Credit Agreement, entered into a series of hedging agreements with ING Capital LLC and Macquarie Bank Limited for the sale of an aggregate of 124,600 ounces of gold at a weighted average price of $ 2,025 per ounce. The hedge agreements have delivery obligations beginning in July 2024 and ending in December 2026, and represent approximately 42 % of the Company’s interest in the projected production from the Manh Choh mine over the current anticipated life of the mine. As of September 30, 2024, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: Period Commodity Volume Weighted 2024 Gold 6,274 $ 2,025 2025 Gold 62,400 $ 2,025 2026 Gold 41,100 $ 2,025 Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023. As of September 30, 2024 As of December 31, 2023 Derivatives not designated as hedging instruments Balance Sheet Gross Gross Net Gross Gross Net Commodity Contracts Derivative contract asset - current $ — $ — $ — $ — $ — $ — Commodity Contracts Derivative contract liability - current $ ( 30,254,431 ) $ — $ ( 30,254,431 ) $ ( 2,679,784 ) $ — $ ( 2,679,784 ) Commodity Contracts Derivative contract asset - noncurrent $ — $ — $ — $ — $ — $ — Commodity Contracts Derivative contract liability - noncurrent $ ( 44,285,191 ) $ — $ ( 44,285,191 ) $ ( 20,737,997 ) $ — $ ( 20,737,997 ) As of September 30, 2024, the fair value of derivatives in a net liability position, which excludes any adjustment for nonperformance risk, related to these agreements was $ 74,539,622 . As of September 30, 2024, the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions as of September 30, 2024, it could have been required to settle its obligations under the agreements at their termination value of $ 74,539,622 . Effect of Derivatives Not Designated as Hedging Instruments on the Income Statement The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2024 and 2023. Derivatives Not Designated as Hedging Instruments under Subtopic 815-20 Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Amount of Gain or (Loss) Three months ended Three months ended Nine months ended Nine months ended Commodity Contracts Unrealized loss on derivative contracts $ ( 22,943,019 ) $ ( 2,725,411 ) $ ( 51,121,840 ) $ ( 2,725,411 ) Commodity Contracts Realized loss on derivative contracts $ ( 5,901,160 ) $ — $ ( 5,901,160 ) $ — Total $ ( 28,844,179 ) $ ( 2,725,411 ) $ ( 57,023,000 ) $ ( 2,725,411 ) Credit-risk-related Contingent Features Cross Default. The Company has agreements with each of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. Material adverse change. Certain of the Company's agreements with its derivative counterparties contain provisions where if a specified event or condition occurs that materially changes the Company's creditworthiness in an adverse manner, the Company may be required to fully collateralize its obligations under the derivative instrument. Incorporation of loan covenants. The Company has an agreement with a derivative counterparty that incorporates the loan covenant provisions of the Company's indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement. Metal Sales In order to physically deliver the gold as stipulated in the hedge agreements, the Company purchases its 30 % share of gold from the Peak Gold JV. The excess ounces purchased that are not delivered to meet its hedge obligations are sold to the derivative counterparties in accordance with their respective sale agreements, with the resulting gain or loss being recorded in "Other Income/(Expense)". The gains on metal sales for the three and nine months ended September 30, 2024 were $ 0.9 million for both periods. The Company did no t have any gain or losses on metal sales for the comparative periods in 2023. The sales are accounted for under ASC 610 Other Income and not ASC 606 Revenue from Contracts with Customers, since the sales are incidental to the Company's primary contractual obligation and do not constitute the Company's ongoing or central operations. |
Note 15 - Fair Value Measuremen
Note 15 - Fair Value Measurement | 9 Months Ended |
Sep. 30, 2024 | |
Notes To Financial Statements [Abstract] | |
Fair Value Measurement | 15. Fair Value Measurement The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 provides a framework for measuring fair value, establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of the counterparty’s creditworthiness when valuing certain assets. The three levels are defined as follows: Level 1 – Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Other inputs that are observable directly or indirectly, such as quoted prices in markets that are not active or inputs, which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Unobservable inputs for which there are little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instrument’s complexity. The Company reflects transfers between the three levels at the beginning of the reporting period in which the availability of observable inputs no longer justifies classification in the original level. There were no transfers between fair value hierarchy levels for the quarter ended September 30, 2024. Fair Value on a Recurring Basis The Company performs fair value measurements on a recurring basis for the following: Derivative Financial Instruments - Derivative financial instruments are carried at fair value and measured on a recurring basis. The Company's potential derivative financial instruments include features embedded within its convertible debenture with Queens Road Capital (see Note 13). These measurements were not material to the Consolidated Financial Statements. Derivative Hedges - As discussed in Note 14, the Company has entered into hedge agreements with delivery obligations of gold ounces. The Company utilizes derivative instruments in order to manage exposure to risks associated with fluctuating commodity prices. The derivative hedges are mark-to-market with changes in estimated value driven by forward commodity prices. Marketable Securities - The Company, owns investments in publicly traded companies. Changes in the fair value of these investments are recorded through income using quoted prices obtained from securities exchanges. Contingent Consideration - As discussed in Note 11 , the Company will be obligated to pay CRH additional consideration if production on the Lucky Shot Property meets two separate milestone payment thresholds. The fair value of this contingent consideration is measured on a recurring basis, and is driven by the probability of reaching the milestone payment thresholds. The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands): As of September 30, 2024 Level 1 Level 2 Level 3 Financial Assets Derivative contract asset - current $ — $ — $ — Marketable securities - noncurrent $ 740,700 $ — $ — Financial Liabilities Derivative Liability - current $ — $ 30,254,431 $ — Derivative Liability - noncurrent $ — $ 44,285,191 $ — Contingent consideration liability - noncurrent $ — $ — $ 1,100,480 As of December 31, 2023 Financial Assets Derivative contract asset - current $ — $ — $ — Marketable securities - noncurrent $ — $ — $ — Financial Liabilities Derivative Liability - current $ — $ 2,679,784 $ — Derivative Liability - noncurrent $ — $ 20,737,997 $ — Contingent consideration liability - noncurrent $ — $ — $ 1,100,480 Fair Value on a Nonrecurring Basis The Company applies the provisions of the fair value measurement standard on a non-recurring basis to its non-financial assets and liabilities, including mineral properties, business combinations, and asset retirement obligations. These assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments if events or changes in certain circumstances indicate that adjustments may be necessary. |
Note 16 - Acquisitions
Note 16 - Acquisitions | 9 Months Ended |
Sep. 30, 2024 | |
Business Combinations [Abstract] | |
Acquisitions | 16. Acquisitions HighGold Acquisition On May 1, 2024 , the Company entered into a definitive arrangement agreement (the “Arrangement Agreement”) by and among the Company, Contango Mining Canada Inc., a corporation organized under the laws of British Columbia and a wholly owned subsidiary of the Company, and HighGold Mining Inc., a corporation existing under the laws of the Province of British Columbia (“HighGold”), pursuant to which the Company acquired 100 % of the outstanding equity interests of HighGold (the “HighGold Acquisition”) by way of a court approved plan of arrangement under the Business Corporations Act (British Columbia). The HighGold Acquisition, which was approved by HighGold shareholders at HighGold’s special meeting held on June 27, 2024, was subsequently approved by the Supreme Court of British Columbia on July 2, 2024. On July 10, 2024, the Company completed the HighGold Acquisition and, as contemplated by the Arrangement Agreement, each HighGold share of common stock was exchanged for 0.019 shares of Contango common stock, par value $ 0.01 per share (the “common stock”). HighGold options were also exchanged, directly or indirectly, for Contango shares of common stock, based on the fair market value of the HighGold options prior to the closing date. Upon closing of the HighGold Acquisition, the Company issued an aggregate of 1,698,887 shares of Contango common stock, with a value of $ 33.8 million, to HighGold shareholders in reliance upon an exemption from the registration requirements of the Securities Act, pursuant to Section 3(a)(10) of the Securities Act. Such exemption was based on the final order of the Supreme Court of British Columbia issued on July 2, 2024, approving the Acquisition following a hearing by the court which considered, among other things, the fairness of the Acquisition to the persons affected. Upon completion of the Acquisition, existing Contango shareholders own approximately 85.9 % and HighGold shareholders own approximately 14.1 % of the combined company. Avidian Alaska Acquisition On May 1, 2024 , the Company entered into a stock purchase agreement with Avidian Gold Corp. (“Avidian”) pursuant to which the Company has agreed to purchase Avidian’s 100 % owned Alaskan subsidiary, Avidian Gold Alaska Inc., for initial consideration of $ 2,400,000 , with a contingent payment for up to $ 1,000,000 (the “Avidian Alaska Acquisition”). On August 6, 2024 , the Company completed the Avidian Alaska Acquisition. The total purchase price of $ 2,063,539 consisted of (i) $ 400,000 in cash (the “Cash Consideration”) and (ii) $ 1,663,539 in shares of Contango common stock, with $ 207,945 of such shares withheld at closing and to be paid only upon settlement of a withholding contingency (the “Equity Consideration”). The Cash Consideration shall be paid in the following tranches: (i) a deposit of $ 50,000 (paid), (ii) $ 150,000 to be paid upon settlement of a withholding contingency and (iii) $ 200,000 of the Cash Consideration to be paid on or before the six-month anniversary of the transaction closing date. The number of shares of common stock constituting the Equity Consideration, which were issued or will be issued in reliance upon an exemption from the registration requirements of the Securities Act, pursuant to Section 4(a)(2) of the Securities Act, was determined based on Contango’s 10-day VWAP on the NYSE American immediately prior to the closing date. The Company evaluated these acquisitions under ASC 805, Business Combinations. ASC 805 requires that an acquirer determine whether it has acquired a business. If the criteria of ASC 805 are met, a transaction would be accounted for as a business combination and the purchase price is allocated to the respective net assets assumed based on their fair values and a determination is made whether any goodwill results from the transaction. In evaluating the criteria outlined by this standard, the Company concluded that the acquired set of assets did not meet the US GAAP definition of a business (there are several reasons the assets do not constitute a business including the fact that the assembled workforce does not currently perform a substantive process). Therefore, the Company accounted for both purchases as an asset acquisition. With regards to the HighGold acquisition, the Company allocated the total consideration transferred on the date of the acquisition, approximately $ 35.0 million, to the assets acquired on a relative fair value basis. The total consideration transferred was comprised of $ 33.8 million in shares and $ 1.2 million in direct transactions costs. With regards to the Avidian Alaska acquisition, the Company allocated the total consideration transferred on the date of the acquisition, approximately $ 2.1 million, to the assets acquired on a relative fair value basis. The total consideration was comprised of $ 0.4 million in scheduled cash payments, and $ 1.7 million in shares. The Avidian Alaska acquisition included a $ 1,000,000 payable contingent upon the Company achieving a decision to proceed with commercial production within 120 months of the closing date. Given that the Company is still in the early exploration stage of the Avidian claims and has no current plans or data that would support the development of a mine, it cannot reasonably conclude that reaching commercial production is probable. As such, no liability will be recognized for the deferred consideration. If circumstances change within the 120-month period outlined by the Avidian stock purchase agreement and commercial production is deemed probable, management will recognize the deferred consideration with a corresponding increase to the related mineral property. As such, the Company will no t recognize any amount for the deferred consideration portion in the acquisition of Avidian. That is, because a liability cannot be recognized in accordance with ASC 450, the fair value is zero . |
Note 17 - General and Administr
Note 17 - General and Administrative Expenses | 9 Months Ended |
Sep. 30, 2024 | |
General and Administrative Expense [Abstract] | |
General and Administrative Expenses | 17. General and Administrative Expenses The following table presents the Company's general and administrative expenses for the three and nine months ended September 30, 2024 and 2023. Three Months Three Months Nine Months Nine Months 2024 2023 2024 2023 General and administrative expenses: Marketing and investor relations $ 183,181 $ 57,349 $ 434,080 $ 238,708 Office and administrative costs 232,602 68,813 347,651 215,356 Insurance 352,942 259,798 962,118 750,174 Professional fees 236,372 457,680 941,984 1,249,259 Regulatory fees 161,449 145,006 345,731 317,598 Salaries and benefits 500,550 819,077 1,497,079 1,740,765 Stock-based compensation 660,985 739,784 1,973,164 2,072,650 Travel 101,968 48,720 288,643 146,430 Director fees 181,576 171,250 481,576 527,500 Total $ 2,611,625 $ 2,767,477 $ 7,272,026 $ 7,258,440 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2024 | |
Accounting Policies [Abstract] | |
Cash Distributions from the Joint Venture Company | Cash distributions from the Joint Venture Company. The Company applies distributions received from the Joint Venture Company as a return on investment and are deducted from the carrying amount of the investment balance as permitted under ASC 323 - Investments - Equity Method and Joint Ventures. The Company has elected the "Nature of the distribution approach" and the distributions from the Joint Venture Company represents a return on investment as the distributions are generated from the regular course of business earning and will be presented under operating activities on the Statements of Cashflows. |
Risk Management Objective of Using Derivatives | Risk Management Objective of Using Derivatives. The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by gold future pricing. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments. |
Non-designated Hedges | Non-designated Hedges. Derivatives not designated as hedges are not speculative and are used to manage the Company’s exposure to gold movements and the Company has elected not to apply hedge accounting. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. |
Note 5 - Investment in the Pe_2
Note 5 - Investment in the Peak Gold JV (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Roll-forward of Equity Method Investment [Table Text Block] | The following table is a roll-forward of the Company’s investment in the Peak Gold JV as of September 30, 2024: Investment in Peak Gold, LLC Investment balance at September 30, 2023 $ 21,420,712 Investment in Peak Gold, LLC 7,350,000 Loss from equity investment in Peak Gold, LLC ( 706,307 ) Investment balance at December 31, 2023 $ 28,064,405 Investment in Peak Gold, LLC 15,450,000 Loss from equity investment in Peak Gold, LLC ( 140,253 ) Investment balance at March 31, 2024 $ 43,374,152 Investment in Peak Gold, LLC 11,790,000 Loss from equity investment in Peak Gold, LLC ( 695,633 ) Investment balance at June 30, 2024 $ 54,468,519 Investment in Peak Gold, LLC 4,050,000 Distributions received from Peak Gold, LLC ( 19,500,000 ) Income from equity investment in Peak Gold, LLC 28,525,857 Investment balance at September 30, 2024 $ 67,544,376 |
The Joint Venture Company [Member] | |
Summarized Income Statement of Equity Method Investment [Table Text Block] | The following table presents the condensed unaudited results of operations for the Peak Gold JV for the three and nine month periods ended September 30, 2024 and 2023 in accordance with US GAAP: Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Revenue $ 225,652,092 $ — $ 225,652,092 $ — Cost of sales ( 123,803,980 ) — ( 123,803,980 ) — Gross profit 101,848,112 — 101,848,112 — Other expenses ( 6,761,923 ) ( 4,574,980 ) ( 9,548,208 ) ( 7,955,691 ) Net Income/(Loss) $ 95,086,189 $ ( 4,574,980 ) $ 92,299,904 $ ( 7,955,691 ) |
Note 7 - Net Loss Per Share (Ta
Note 7 - Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
NET LOSS PER SHARE | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | A reconciliation of the components of basic and diluted net loss per share of common stock is presented below: Three Months Ended September 30, 2024 2023 Weighted Loss Weighted Loss Per Net Loss Shares Per Share Net Loss Shares Share Basic Net Loss per Share: Net loss attributable to common stock $ ( 9,712,416 ) 11,973,992 $ ( 0.81 ) $ ( 13,149,227 ) 8,935,863 $ ( 1.47 ) Diluted Net Loss per Share: Net loss attributable to common stock $ ( 9,712,416 ) 11,973,992 $ ( 0.81 ) $ ( 13,149,227 ) 8,935,863 $ ( 1.47 ) Nine Months Ended September 30, 2024 2023 Weighted Loss Weighted Loss Per Net Loss Shares Per Share Net Loss Shares Share Basic Net Loss per Share: Net loss attributable to common stock $ ( 48,755,408 ) 10,447,870 $ ( 4.67 ) $ ( 31,490,226 ) 8,009,699 $ ( 3.93 ) Diluted Net Loss per Share: Net loss attributable to common stock $ ( 48,755,408 ) 10,447,870 $ ( 4.67 ) $ ( 31,490,226 ) 8,009,699 $ ( 3.93 ) |
Note 9 - Property & Equipment (
Note 9 - Property & Equipment (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | The table below sets forth the book value by type of fixed asset as well as the estimated useful life: Asset Type Estimated September 30, 2024 December 31, 2023 Mineral properties N/A - Units of Production $ 50,766,767 $ 11,700,726 Land Not Depreciated 87,737 87,737 Buildings and improvements (years) 20 - 39 1,455,546 1,455,546 Machinery and equipment (years) 3 - 10 453,076 287,635 Vehicles (years) 5 135,862 135,862 Computer and office equipment (years) 5 39,402 23,571 Furniture & fixtures (years) 5 2,270 2,270 Less: Accumulated depreciation and amortization ( 333,109 ) ( 244,864 ) Less: Accumulated impairment ( 122,171 ) ( 122,136 ) Property & Equipment, net $ 52,485,380 $ 13,326,347 |
Note 10 - Stock-Based Compens_2
Note 10 - Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Unvested Restricted Stock | Below table indicates the unvested restricted stock balance as of September 30, 2024 and December 31, 2023: Number of restricted shares unvested Balance - January 1, 2024 433,528 Restricted shares granted 159,150 Restricted shares vested ( 155,589 ) Balance - September 30, 2024 437,089 Balance - July 1, 2023 429,376 Restricted shares granted 10,819 Restricted shares vested ( 6,667 ) Balance - December 31, 2023 433,528 Stock Options. Under the Equity Plans, options granted must have an exercise price equal to or greater than the market price of the Company’s common stock on the date of grant. The Company may grant key employees both incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, and stock options that are not qualified as incentive stock options. Stock option grants to non-employees, such as directors and consultants, may only be stock options that are not qualified as incentive stock options. Options generally expire after five years . Upon option exercise, the Company’s policy is to issue new shares to option holders. The Company applies the fair value method to account for stock option expense. Under this method, cash flows from the exercise of stock options resulting from tax benefits in excess of recognized cumulative compensation cost (excess tax benefits) are classified as financing cash flows. See Note 4 - Summary of Significant Accounting Policies from Company's Form 10-KT for the six-month period ended December 31, 2023. All employee stock option grants are expensed over the stock option’s vesting period based on the fair value at the date the options are granted. The fair value of each option is estimated as of the date of grant using the Black-Scholes options-pricing model. Expected volatilities are based on the historical weekly volatility of the Company’s stock with a look-back period equal to the expected term of the options. The expected dividend yield is zero as the Company has never declared and does not anticipate declaring dividends on its common stock. The expected term of the options granted represents the period of time that the options are expected to be outstanding. The simplified method is used to estimate the expected term, due to the lack of historical stock option exercise activity. The risk-free interest rate is based on U.S. Treasury bills with a duration equal to or close to the expected term of the options at the time of grant. There were no newly vested stock options for the nine month period ended September 30, 2024 or for the nine month period ended September, 2023. As of September 30, 2024, the total unrecognized compensation cost related to nonvested stock options was $ 0 . As of September 30, 2024, the stock options had a weighted average remaining life of 0.31 years. |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | A summary of the status of stock options granted under the Equity Plans as of September 30, 2024 and changes during the n ine months then ended, is presented in the table below: Nine Months Ended September 30, 2024 Shares Under Weighted Outstanding as of December 31, 2023 100,000 $ 14.50 Granted — Exercised — Forfeited — Outstanding at the end of the period 100,000 $ 14.50 Aggregate intrinsic value $ 492,000 Exercisable, end of the period 100,000 Aggregate intrinsic value $ 492,000 Available for grant, end of period 458,376 Weighted average fair value per share of options $ — |
Note 13 - Debt (Tables)
Note 13 - Debt (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | The table below shows the components of Debt, net as of September 30, 2024 and December 31, 2023 : September 30, December 31, Secured Debt Facility Principal amount $ 58,000,000 $ 30,000,000 Unamortized debt discount ( 1,627,435 ) ( 2,411,532 ) Unamortized debt issuance costs ( 2,082,496 ) ( 2,394,168 ) Debt, net $ 54,290,069 $ 25,194,300 Convertible Debenture Principal amount $ 20,000,000 $ 20,000,000 Unamortized debt discount ( 344,925 ) ( 414,854 ) Unamortized debt issuance costs ( 82,800 ) ( 99,587 ) Debt, net $ 19,572,275 $ 19,485,559 Total Debt, net $ 73,862,344 $ 44,679,859 Less current portion $ 34,900,000 $ 7,900,000 Debt non-current portion, net $ 38,962,344 $ 36,779,859 |
Note 14 - Derivatives and Hed_2
Note 14 - Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Not Designated as Hedging Instruments [Table Text Block] | As of September 30, 2024, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: Period Commodity Volume Weighted 2024 Gold 6,274 $ 2,025 2025 Gold 62,400 $ 2,025 2026 Gold 41,100 $ 2,025 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023. As of September 30, 2024 As of December 31, 2023 Derivatives not designated as hedging instruments Balance Sheet Gross Gross Net Gross Gross Net Commodity Contracts Derivative contract asset - current $ — $ — $ — $ — $ — $ — Commodity Contracts Derivative contract liability - current $ ( 30,254,431 ) $ — $ ( 30,254,431 ) $ ( 2,679,784 ) $ — $ ( 2,679,784 ) Commodity Contracts Derivative contract asset - noncurrent $ — $ — $ — $ — $ — $ — Commodity Contracts Derivative contract liability - noncurrent $ ( 44,285,191 ) $ — $ ( 44,285,191 ) $ ( 20,737,997 ) $ — $ ( 20,737,997 ) |
Derivative Instruments, Gain (Loss) [Table Text Block] | The table below presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2024 and 2023. Derivatives Not Designated as Hedging Instruments under Subtopic 815-20 Location of Gain or (Loss) Recognized in Income on Derivative Amount of Gain or (Loss) Amount of Gain or (Loss) Three months ended Three months ended Nine months ended Nine months ended Commodity Contracts Unrealized loss on derivative contracts $ ( 22,943,019 ) $ ( 2,725,411 ) $ ( 51,121,840 ) $ ( 2,725,411 ) Commodity Contracts Realized loss on derivative contracts $ ( 5,901,160 ) $ — $ ( 5,901,160 ) $ — Total $ ( 28,844,179 ) $ ( 2,725,411 ) $ ( 57,023,000 ) $ ( 2,725,411 ) |
Note 15 - Fair Value Measurem_2
Note 15 - Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Note 16 - Fair Value Measurement | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table summarizes the fair value of the Company’s financial assets and liabilities, by level within the fair-value hierarchy (in thousands): As of September 30, 2024 Level 1 Level 2 Level 3 Financial Assets Derivative contract asset - current $ — $ — $ — Marketable securities - noncurrent $ 740,700 $ — $ — Financial Liabilities Derivative Liability - current $ — $ 30,254,431 $ — Derivative Liability - noncurrent $ — $ 44,285,191 $ — Contingent consideration liability - noncurrent $ — $ — $ 1,100,480 As of December 31, 2023 Financial Assets Derivative contract asset - current $ — $ — $ — Marketable securities - noncurrent $ — $ — $ — Financial Liabilities Derivative Liability - current $ — $ 2,679,784 $ — Derivative Liability - noncurrent $ — $ 20,737,997 $ — Contingent consideration liability - noncurrent $ — $ — $ 1,100,480 |
Note 17 - General and Adminis_2
Note 17 - General and Administrative Expenses (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
General and Administrative Expense [Abstract] | |
Components of General and Administrative Expenses | The following table presents the Company's general and administrative expenses for the three and nine months ended September 30, 2024 and 2023. Three Months Three Months Nine Months Nine Months 2024 2023 2024 2023 General and administrative expenses: Marketing and investor relations $ 183,181 $ 57,349 $ 434,080 $ 238,708 Office and administrative costs 232,602 68,813 347,651 215,356 Insurance 352,942 259,798 962,118 750,174 Professional fees 236,372 457,680 941,984 1,249,259 Regulatory fees 161,449 145,006 345,731 317,598 Salaries and benefits 500,550 819,077 1,497,079 1,740,765 Stock-based compensation 660,985 739,784 1,973,164 2,072,650 Travel 101,968 48,720 288,643 146,430 Director fees 181,576 171,250 481,576 527,500 Total $ 2,611,625 $ 2,767,477 $ 7,272,026 $ 7,258,440 |
Note 1 - Organization and Bus_2
Note 1 - Organization and Business (Details Textual) - a | Sep. 30, 2024 | May 17, 2023 | Sep. 30, 2020 |
State of Alaska Located Near Tidewater [Member] | Johnson Tract Project [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 21,000 | ||
Contango Minerals [Member] | State of Alaska Mining Claims Located North and Northwest of Tetlin Lease [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 145,280 | ||
Contango Minerals [Member] | State of Alaska Mining Claims Located Near Eagle/Hona Property [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 69,780 | ||
Contango Minerals [Member] | State of Alaska Mining Claims Located Near Triple Z Property [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 14,800 | ||
Contango Minerals [Member] | State of Alaska Mining Claims Located in Richardson District [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 52,700 | ||
Contango Minerals [Member] | State of Alaska Mining Claims Located North and East of Lucky Shot Property [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 8,000 | ||
Avidian Gold Alaska Inc. [Member] | State of Alaska Mining Claims and Upland Mining Leases [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 11,711 | ||
Avidian Gold Alaska Inc. [Member] | Located in Fairbanks Mining District [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 1,021 | ||
Avidian Gold Alaska Inc. [Member] | Valdez Creek Mining District on Eastern Edge of Alaska Range [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 10,690 | ||
Avidian Gold Alaska Inc. [Member] | State of Alaska Mining Claims, Leasehold Locations And Upland Mining Lease Located In Fairbanks Mining District [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 3,380 | ||
Alaska Hard Rock Lease [Member] | Alaska Gold Torrent, LLC [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 8,600 | ||
Peak Gold, LLC [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Equity Method Investment, Ownership Percentage | 30% | 30% | |
Peak Gold, LLC [Member] | KG Mining [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Equity Method Investment, Ownership Percentage | 30% | ||
The Joint Venture Company [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Equity Method Investment, Ownership Percentage | 30% | ||
The Joint Venture Company [Member] | KG Mining [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Equity Method Investment, Ownership Percentage by Other Owner | 70% | ||
The Joint Venture Company [Member] | State of Alaska Mining Claims for Exploration and Development [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 13,000 | ||
The Joint Venture Company [Member] | Tetlin Lease [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Area of Land (Acre) | 675,000 | ||
HighGold Mining Inc. [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Equity Method Investment, Ownership Percentage | 100% | ||
JT Mining, Inc. [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Equity Method Investment, Ownership Percentage | 100% | ||
Royal Alaska, LLC [Member] | KG Mining [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Equity Method Investment, Ownership Percentage | 100% | ||
Royal Gold [Member] | Peak Gold, LLC [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40% | ||
CORE Alaska, LLC [Member] | Peak Gold, LLC [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Equity Method Investment, Ownership Percentage | 30% |
Note 3 - Liquidity (Details Tex
Note 3 - Liquidity (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | |||||
Oct. 31, 2024 | Oct. 24, 2024 | Sep. 30, 2024 | Jul. 31, 2024 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2024 | |
Schedule Of Liquidity [Line Items] | |||||||
Principal payments | $ 2,000,000 | $ 0 | |||||
The Joint Venture Company [Member] | |||||||
Schedule Of Liquidity [Line Items] | |||||||
Exploration Budget, Funded Amount | $ 78,600,000 | 78,600,000 | |||||
Distributions from exploration | 19,500,000 | ||||||
Cash distributions received | $ 31,500,000 | ||||||
Exploration budget amount funded by the company for next fiscal year | 31,300,000 | 31,300,000 | |||||
Repayment obligations on the facility | 34,900,000 | ||||||
Principal payments | $ 5,900,000 | $ 2,000,000 | |||||
The Joint Venture Company [Member] | Forecast [Member] | |||||||
Schedule Of Liquidity [Line Items] | |||||||
Exploration budget funded amount for next fiscal year | $ 0 | ||||||
The Joint Venture Company [Member] | Subsequent Event [Member] | |||||||
Schedule Of Liquidity [Line Items] | |||||||
Cash distribution relating to production | $ 12,000,000 | ||||||
The Joint Venture Company [Member] | Secured Credit Facility [Member] | |||||||
Schedule Of Liquidity [Line Items] | |||||||
Exploration Budget, Funded Amount | $ 60,000,000 | $ 60,000,000 |
Note 5 - Investment in the Pe_3
Note 5 - Investment in the Peak Gold JV (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity Method Investments | $ 67,544,376 | $ 67,544,376 | $ 28,064,405 | |||||
The Joint Venture Company [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity Method Investment, Aggregate Cost | 1,400,000 | 1,400,000 | ||||||
Equity Method Investment, Total Contributions | 106,200,000 | |||||||
Equity Method Investment, Cash Distributions Received | $ 19,500,000 | $ 19,500,000 | ||||||
Equity Method Investment, Ownership Percentage | 30% | 30% | ||||||
Income from Equity Method Investments, Unrecorded | $ 28,500,000 | $ 27,700,000 | ||||||
Loss from Equity Method Investments, Unrecorded | $ 1,400,000 | $ 2,400,000 | ||||||
Equity Method Investment, Summarized Financial Information, Inception-to-date Cumulative Income (Loss) | 46,100,000 | 46,100,000 | ||||||
Suspended Losses | 4,300,000 | |||||||
Equity Method Investments | $ 67,544,376 | $ 21,420,712 | $ 67,544,376 | $ 21,420,712 | $ 54,468,519 | $ 43,374,152 | $ 28,064,405 | $ 0 |
Note 5 - Investment in Peak Gol
Note 5 - Investment in Peak Gold JV - Roll-forward of Investment in the Joint Venture Company (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Investment balance | $ 28,064,405 | $ 28,064,405 | |||||
Investment in Peak Gold, LLC | 31,290,000 | $ 38,840,000 | |||||
Income (loss) from equity investment in Peak Gold, LLC | $ 28,525,857 | $ (5,609,288) | 27,689,971 | (17,419,288) | |||
Investment balance | 67,544,376 | $ 28,064,405 | 67,544,376 | ||||
The Joint Venture Company [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Investment balance | 54,468,519 | $ 43,374,152 | 28,064,405 | 21,420,712 | 0 | 28,064,405 | |
Investment in Peak Gold, LLC | 4,050,000 | 11,790,000 | 15,450,000 | 7,350,000 | |||
Distributions received from Peak Gold, LLC | (19,500,000) | (19,500,000) | |||||
Income (loss) from equity investment in Peak Gold, LLC | 28,525,857 | (695,633) | (140,253) | (706,307) | |||
Investment balance | $ 67,544,376 | $ 54,468,519 | $ 43,374,152 | $ 28,064,405 | $ 21,420,712 | $ 67,544,376 | $ 21,420,712 |
Note 5 - Investment in Peak G_2
Note 5 - Investment in Peak Gold JV - Condensed Results of Operations for Peak Gold, LLC (Details) - The Joint Venture Company [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenues | $ 225,652,092 | $ 0 | $ 225,652,092 | $ 0 |
Cost of sales | (123,803,980) | 0 | (123,803,980) | 0 |
Gross Profit | 101,848,112 | 0 | 101,848,112 | 0 |
Other expenses | (6,761,923) | (4,574,980) | (9,548,208) | (7,955,691) |
Net Income/(Loss) | $ 95,086,189 | $ (4,574,980) | $ 92,299,904 | $ (7,955,691) |
Note 6 - Prepaid Expenses and_2
Note 6 - Prepaid Expenses and Other (Details Textual) - USD ($) | Sep. 30, 2024 | Dec. 31, 2023 |
Prepaid Expenses and Other [Abstract] | ||
Prepaid Expense, Current | $ 1,083,910 | $ 1,112,910 |
Note 7 - Net Loss Per Share (De
Note 7 - Net Loss Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
NET LOSS PER SHARE | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 866,875 | 501,000 | 866,875 | 501,000 |
Note 7 - Net Loss Per Share - R
Note 7 - Net Loss Per Share - Reconciliation of the Components of Basic and Diluted Net Loss Per Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
NET LOSS PER SHARE | ||||
Net loss attributable to common stock, basic | $ (9,712,416) | $ (13,149,227) | $ (48,755,408) | $ (31,490,226) |
Weighted Average Shares, basic (in shares) | 11,973,992 | 8,935,863 | 10,447,870 | 8,009,699 |
Income Per Share, basic (in dollars per share) | $ (0.81) | $ (1.47) | $ (4.67) | $ (3.93) |
Net loss attributable to common stock, diluted | $ (9,712,416) | $ (13,149,227) | $ (48,755,408) | $ (31,490,226) |
Weighted Average Shares, diluted (in shares) | 11,973,992 | 8,935,863 | 10,447,870 | 8,009,699 |
Income Per Share, diluted (in dollars per share) | $ (0.81) | $ (1.47) | $ (4.67) | $ (3.93) |
Note 8 - Stockholders' Equity_2
Note 8 - Stockholders' Equity (Deficit) (Details Textual) | 3 Months Ended | 9 Months Ended | |||||||||
Jun. 10, 2024 USD ($) $ / shares shares | Jul. 24, 2023 USD ($) $ / shares shares | May 09, 2023 USD ($) $ / shares shares | Jan. 19, 2023 USD ($) $ / shares shares | Sep. 30, 2024 USD ($) $ / shares shares | Sep. 30, 2023 shares | Sep. 30, 2024 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) shares | Dec. 31, 2023 shares | Jun. 30, 2023 shares | Jun. 08, 2023 USD ($) | |
Class of Stock [Line Items] | |||||||||||
Preferred Stock, Shares Authorized (in shares) | 15,000,000 | 15,000,000 | 15,000,000 | ||||||||
Common Stock, Shares, Outstanding (in shares) | 12,223,758 | 12,223,758 | 9,451,753 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 437,089 | 437,089 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options and Warrants, Outstanding, Number (in shares) | 866,875 | 866,875 | |||||||||
Preferred Stock, Shares Issued (in shares) | 0 | 0 | |||||||||
Proceeds from Warrant Exercises | $ | $ 0 | $ 6,886,000 | |||||||||
Common Stock, Shares Authorized (in shares) | 45,000,000 | 45,000,000 | 45,000,000 | ||||||||
Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 63,700 | 1,600,000 | 819,565 | 1,875,961 | |||||||
Stock Issued During Period, Shares, Warrants Exercised (in shares) | 313,000 | ||||||||||
December 2022 and January 2023 Warrants [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 25 | ||||||||||
Class of Warrant or Right, Exercised During Period (in shares) | 313,000 | ||||||||||
Proceeds from Warrant Exercises | $ | $ 6,900,000 | ||||||||||
Stock Issued During Period, Shares, Warrants Exercised (in shares) | 313,000 | ||||||||||
Fair Value Adjustment of Warrants | $ | $ 383,000 | ||||||||||
December 2022 and January 2023 Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.81 | ||||||||||
December 2022 and January 2023 Warrants [Member] | Measurement Input, Expected Term [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 1 | ||||||||||
December 2022 and January 2023 Warrants [Member] | Measurement Input, Price Volatility [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 42.5 | ||||||||||
December 2022 and January 2023 Warrants [Member] | Measurement Input, Expected Dividend Rate [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 0 | ||||||||||
Modified Warrants [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 22 | ||||||||||
New Warrants [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 30 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 313,000 | ||||||||||
New Warrants [Member] | Measurement Input, Risk Free Interest Rate [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.81 | ||||||||||
New Warrants [Member] | Measurement Input, Expected Term [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 1.5 | ||||||||||
New Warrants [Member] | Measurement Input, Price Volatility [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 43.7 | ||||||||||
New Warrants [Member] | Measurement Input, Expected Dividend Rate [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 0 | ||||||||||
Underwritten Public Offering [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 731,750 | 1,600,000 | |||||||||
Warrant exercise price | $ / shares | $ 26 | ||||||||||
Warrants exercisable term | 36 months | ||||||||||
Shares Issued, Price Per Share (in dollars per share) | $ / shares | $ 20.5 | $ 17.77 | $ 19.37 | $ 19.37 | |||||||
Underwriting Agreement, Discount Percentage | 6.50% | 5.50% | 5.50% | ||||||||
Proceeds from Issuance of Common Stock, Net | $ | $ 13,700,000 | $ 28,200,000 | |||||||||
Underwritten Public Offering [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares Issued, Price Per Share (in dollars per share) | $ / shares | $ 19 | ||||||||||
Underwritten Public Offering [Member] | Measurement Input, Risk Free Interest Rate [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 4.57 | ||||||||||
Underwritten Public Offering [Member] | Measurement Input, Expected Term [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 3 | ||||||||||
Underwritten Public Offering [Member] | Measurement Input, Price Volatility [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 57 | ||||||||||
Underwritten Public Offering [Member] | Measurement Input, Expected Dividend Rate [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Warrants and Rights Outstanding, Measurement Input | 0 | ||||||||||
Sales Agreement [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 87,815 | 158,461 | |||||||||
Proceeds from Issuance of Common Stock, Net | $ | $ 1,800,000 | $ 4,100,000 | |||||||||
Sales Agreement [Member] | Common Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Balance remaining from sales agreement | $ | $ 32,800,000 | $ 32,800,000 | |||||||||
Sales Agreement [Member] | Cantor Fitzgerald & Co. [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Offering Agreement, Maximum Aggregate Common Shares May be Offered | $ | $ 40,000,000 | ||||||||||
Commission Fee, Percentage of Gross Proceeds of Shares Sold, Maximum | 2.75% | ||||||||||
Private Placement [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 117,500 | ||||||||||
Rights Agreement, Exercise Price (in dollars per share) | $ / shares | $ 25 | ||||||||||
Proceeds from Issuance of Common Stock, Net | $ | $ 2,300,000 | ||||||||||
Private Placement [Member] | January 2023 Warrants [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Shares Issued, Price Per Share (in dollars per share) | $ / shares | $ 20 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 25 | ||||||||||
Restricted Stock [Member] | |||||||||||
Class of Stock [Line Items] | |||||||||||
Common Stock, Shares, Outstanding (in shares) | 12,223,758 | 12,223,758 | |||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 437,089 | 437,089 | 433,528 | 429,376 |
Note 9 - Property & Equipment -
Note 9 - Property & Equipment - Fixed Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2024 | Dec. 31, 2023 | |
Less: Accumulated depreciation and amortization | $ (333,109) | $ (244,864) |
Less: Accumulated impairment | (122,171) | (122,136) |
Property & Equipment, net | 52,485,380 | 13,326,347 |
Mining Properties and Mineral Rights [Member] | ||
Property, plant and equipment, gross | 50,766,767 | 11,700,726 |
Land [Member] | ||
Property, plant and equipment, gross | 87,737 | 87,737 |
Building and Building Improvements [Member] | ||
Property, plant and equipment, gross | $ 1,455,546 | 1,455,546 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Estimated useful life (Year) | 20 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Estimated useful life (Year) | 39 years | |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | $ 453,076 | 287,635 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Estimated useful life (Year) | 3 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Estimated useful life (Year) | 10 years | |
Vehicles [Member] | ||
Property, plant and equipment, gross | $ 135,862 | 135,862 |
Estimated useful life (Year) | 5 years | |
Computer and Office Equipment [Member] | ||
Property, plant and equipment, gross | $ 39,402 | 23,571 |
Estimated useful life (Year) | 5 years | |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | $ 2,270 | $ 2,270 |
Estimated useful life (Year) | 5 years |
Note 10 - Stock-Based Compens_3
Note 10 - Stock-Based Compensation (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Nov. 14, 2023 | Nov. 01, 2022 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 437,089 | 437,089 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares) | 100,000 | 100,000 | ||||||
Share-Based Payment Arrangement, Expense | $ 700,000 | $ 700,000 | $ 2,000,000 | $ 2,100,000 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term (Year) | 3 months 21 days | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year) | 5 years | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested, Number of Shares (in shares) | 0 | 0 | ||||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 0 | $ 0 | ||||||
Restricted Stock [Member] | ||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 437,089 | 433,528 | 437,089 | 429,376 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 10,819 | 159,150 | ||||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 2,383,848 | $ 2,383,848 | ||||||
Amended Equity Plan [Member] | ||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares) | 600,000 | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares) | 2,600,000 | |||||||
The 2010 Plan [Member] | ||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number (in shares) | 100,000 | 100,000 | 100,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 0 | |||||||
The 2010 Plan [Member] | Restricted Stock [Member] | ||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number (in shares) | 437,089 | 437,089 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grant Date Fair Value | $ 2,600,000 | $ 2,400,000 | ||||||
The 2010 Plan [Member] | Employee Stock Option | ||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | |||||||
The 2010 Plan [Member] | Common Stock [Member] | ||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 458,376 | |||||||
The 2023 Plan [Member] | Common Stock [Member] | ||||||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 193,500 |
Note 10 - Stock-Based Compens_4
Note 10 - Stock-Based Compensation - Schedule of Unvested Restricted Stock (Details) - shares | 6 Months Ended | 9 Months Ended |
Dec. 31, 2023 | Sep. 30, 2024 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Balance | 437,089 | |
Restricted Stock [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Balance | 429,376 | 433,528 |
Restricted shares granted | 10,819 | 159,150 |
Restricted shares vested | (6,667) | (155,589) |
Balance | 433,528 | 437,089 |
Note 10 - Stock-Based Compens_5
Note 10 - Stock-Based Compensation - Summary of Stock Options (Details) | 9 Months Ended |
Sep. 30, 2024 USD ($) $ / shares shares | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Outstanding (in shares) | 100,000 |
The 2010 Plan [Member] | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Outstanding (in shares) | 100,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 14.5 |
Granted (in shares) | 0 |
Exercised (in shares) | 0 |
Forfeited (in shares) | 0 |
Outstanding (in shares) | 100,000 |
Outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 14.5 |
Aggregate intrinsic value, outstanding | $ | $ 492,000 |
Exercisable, end of the period (in shares) | 100,000 |
Aggregate intrinsic value, exercisable | $ | $ 492,000 |
Available for grant, end of period (in shares) | 458,376 |
Weighted average fair value of options granted during the year (in dollars per share) | $ / shares | $ 0 |
Note 11 - Commitments and Con_2
Note 11 - Commitments and Contingencies (Details Textual) | 1 Months Ended | 9 Months Ended | 34 Months Ended | 37 Months Ended | ||||||||||
Sep. 16, 2024 USD ($) | Jul. 11, 2023 USD ($) | Aug. 24, 2021 USD ($) oz | Dec. 31, 2020 USD ($) | Jul. 15, 2012 USD ($) | Jul. 31, 2024 USD ($) | Jul. 31, 2008 USD ($) | Sep. 30, 2024 USD ($) | Jun. 30, 2024 | Sep. 30, 2024 USD ($) | Jul. 01, 2024 a | Jun. 10, 2020 USD ($) | Feb. 06, 2020 USD ($) | Feb. 28, 2019 USD ($) | |
Contingent Salary and Compensation, Retention Agreement | $ 1,000,000 | |||||||||||||
Avidian Alaska [Member] | ||||||||||||||
Lease agreement period | 15 years | |||||||||||||
Lease agreement payment obligation term | Avidian Alaska entered into a 15 year lease agreement with an effective date of July 18, 2015 with Tanya Stolz. Avidian Alaska shall pay minimum annual lease payments as outlined under the schedule in section 4.1 of the agreement. Avidian Alaska's obligation for July 18, 2025 is $100,000 and will increase by $10,000 per year, with a final payment on July 18, 2030 for $130,000 | |||||||||||||
Lease agreement payment obligation amount | $ 100,000 | |||||||||||||
Lease agreement payment obligation increase amount | 10,000 | |||||||||||||
Lease agreement obligation final payment amount | $ 130,000 | |||||||||||||
Tetlin Village Land [Member] | ||||||||||||||
Area of Land (Acre) | a | 5 | |||||||||||||
Chief Executive Officer [Member] | ||||||||||||||
Contingent Salary and Compensation, Retention Agreement | $ 350,000 | $ 1,000,000 | ||||||||||||
Short Term Incentive Plan, Payout, Percentage Cash | 50% | 50% | ||||||||||||
Short Term Incentive Plan, Payout, Percentage Restricted Stock | 50% | 50% | ||||||||||||
Short Term Incentive Plan, Change of Control, Percentage of Base Salary | 200% | 200% | ||||||||||||
Short Term Incentive Plan, Change of Control, Maximum Period of Payment (Day) | 30 days | |||||||||||||
Chief Executive Officer [Member] | Minimum [Member] | ||||||||||||||
Short Term Incentive Plan, Minimum Performance Target, Payout, Percentage of Base Salary | 0% | 0% | ||||||||||||
Chief Executive Officer [Member] | Maximum [Member] | ||||||||||||||
Short Term Incentive Plan, Minimum Performance Target, Payout, Percentage of Base Salary | 200% | 200% | ||||||||||||
Executive Vice President [Member] | ||||||||||||||
Annual Base Salary | $ 300,000 | |||||||||||||
President and Chief Executive Officer [Member] | ||||||||||||||
Annual Base Salary | $ 500,000 | |||||||||||||
CIRI [Member] | ||||||||||||||
Contractual Annual Exploration Costs | $ 25,000 | |||||||||||||
Lease payable | $ 150,000 | $ 150,000 | ||||||||||||
Contractual annual exploration costs payment deferral period | 4 years | |||||||||||||
Production Threshold, One [Member] | Alaska Gold Torrent, LLC [Member] | ||||||||||||||
Asset Acquisition, Contingent Consideration Arrangements, Production Threshold, Mineral Resource (Ounce) | oz | 500,000 | |||||||||||||
Asset Acquisition, Contingent Consideration Arrangements, Production Threshold, Output, Gold (Ounce) | oz | 30,000 | |||||||||||||
Gold to Silver Ratio | 1:65 | |||||||||||||
Asset Acquisition, Consideration Transferred, Contingent Consideration | $ 5,000,000 | |||||||||||||
Production Threshold, One [Member] | Alaska Gold Torrent, LLC [Member] | Common Stock [Member] | ||||||||||||||
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable | $ 3,750,000 | |||||||||||||
Production Threshold, Two [Member] | Alaska Gold Torrent, LLC [Member] | ||||||||||||||
Asset Acquisition, Contingent Consideration Arrangements, Production Threshold, Mineral Resource (Ounce) | oz | 1,000,000 | |||||||||||||
Asset Acquisition, Contingent Consideration Arrangements, Production Threshold, Output, Gold (Ounce) | oz | 60,000 | |||||||||||||
Gold to Silver Ratio | 1:65 | |||||||||||||
Asset Acquisition, Consideration Transferred, Contingent Consideration | $ 5,000,000 | |||||||||||||
Production Threshold, Two [Member] | Alaska Gold Torrent, LLC [Member] | Common Stock [Member] | ||||||||||||||
Asset Acquisition, Consideration Transferred, Equity Interest Issued and Issuable | $ 5,000,000 | |||||||||||||
The Joint Venture Company [Member] | Peak Gold, LLC [Member] | ||||||||||||||
Drawdown prepayments into income | $ 1,200,000 | |||||||||||||
Tetlin Lease [Member] | Minimum [Member] | ||||||||||||||
Advance Royalties to Be Paid Per Year | $ 75,000 | |||||||||||||
Tetlin Lease [Member] | Scenario 3 [Member] | ||||||||||||||
Payment that Lessor May Pay to Lessee to Increase Royalty Rate | $ 450,000 | |||||||||||||
Percentage of Production Royalty Rate Increase | 0.75% | |||||||||||||
Tetlin Lease [Member] | The Joint Venture Company [Member] | ||||||||||||||
Contractual Annual Exploration Costs | $ 350,000 | |||||||||||||
Tetlin Lease [Member] | The Joint Venture Company [Member] | Minimum [Member] | ||||||||||||||
Royalty Rate | 3% | |||||||||||||
Tetlin Lease [Member] | The Joint Venture Company [Member] | Maximum [Member] | ||||||||||||||
Royalty Rate | 5% | |||||||||||||
Tetlin Lease and Certain Other Properties [Member] | ||||||||||||||
Annual Claim Rentals | $ 362,465 | $ 362,465 | ||||||||||||
Tetlin Lease and Certain Other Properties [Member] | The Joint Venture Company [Member] | Royal Gold [Member] | ||||||||||||||
Overriding Royalty Interest | 3% | 3% | ||||||||||||
Additional Properties [Member] | The Joint Venture Company [Member] | Royal Gold [Member] | ||||||||||||||
Net Smelter Returns Silver Royalty, Percent | 28% | 28% | ||||||||||||
Silver Royalty [Member] | The Joint Venture Company [Member] | ||||||||||||||
Royalty value greater than amount | $ 1,200,000 | $ 1,200,000 | ||||||||||||
Silver Royalty [Member] | The Joint Venture Company [Member] | KG Mining [Member] | ||||||||||||||
Prepayment received pursuant to purchase agreement | 1,200,000 | 1,200,000 | ||||||||||||
Omnibus Royalty Agreement [Member] | The Joint Venture Company [Member] | ||||||||||||||
Royalty value greater than amount | $ 1,200,000 | $ 1,200,000 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Line Items] | |||||
Effective Income Tax Rate Reconciliation, Percent | (1.51%) | 0% | (1.51%) | 0% | |
Unrecognized Tax Benefits, Ending Balance | $ 0 | $ 0 | $ 0 | ||
Percentage of taxable income to NOLs | 80% | ||||
Income tax expense | 718,827 | $ 0 | $ 718,827 | $ 0 | |
Deferred tax liability on acquisition of exploration and evaluation assets | 2,330,577 | 2,330,577 | |||
Federal [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax expense | 507,880 | 507,880 | |||
State [Member] | |||||
Income Tax Disclosure [Line Items] | |||||
Income tax expense | $ 210,947 | $ 210,947 |
Note 13 - Debt - Components of
Note 13 - Debt - Components of Debt (Details) - USD ($) | Sep. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Line Items] | ||
Debt, net | $ 73,862,344 | $ 44,679,859 |
Total Debt, net | 73,862,344 | 44,679,859 |
Less current portion | 34,900,000 | 7,900,000 |
Debt non-current portion, net | 38,962,344 | 36,779,859 |
Secured Debt [Member] | ||
Debt Disclosure [Line Items] | ||
Principal amount | 58,000,000 | 30,000,000 |
Unamortized debt discount | (1,627,435) | (2,411,532) |
Unamortized debt issuance costs | (2,082,496) | (2,394,168) |
Debt, net | 54,290,069 | 25,194,300 |
Total Debt, net | 54,290,069 | 25,194,300 |
Convertible Debt [Member] | ||
Debt Disclosure [Line Items] | ||
Principal amount | 20,000,000 | 20,000,000 |
Unamortized debt discount | (344,925) | (414,854) |
Unamortized debt issuance costs | (82,800) | (99,587) |
Debt, net | 19,572,275 | 19,485,559 |
Total Debt, net | $ 19,572,275 | $ 19,485,559 |
Note 13 - Debt (Details Textual
Note 13 - Debt (Details Textual) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Aug. 02, 2023 oz $ / oz | May 17, 2023 USD ($) oz | Apr. 26, 2022 USD ($) EquivalentShares $ / shares shares | Oct. 31, 2024 USD ($) | Jul. 31, 2024 USD ($) | Sep. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2026 USD ($) | Dec. 31, 2025 USD ($) | Dec. 31, 2023 USD ($) | Apr. 25, 2022 | |
Debt Disclosure [Line Items] | |||||||||||
Proceeds from Issuance of Long-Term Debt | $ 30,000,000 | $ 17,647,500 | |||||||||
Repayments of Long-Term Debt | 2,000,000 | 0 | |||||||||
Long-Term Debt | 73,862,344 | $ 44,679,859 | |||||||||
Amortization of Debt Issuance Costs and Discounts | $ 2,994,669 | (39,056) | |||||||||
Designated as Hedging Instrument [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Derivative, Nonmonetary Notional Amount, Mass (Ounce) | oz | 124,600 | ||||||||||
Underlying, Derivative Mass (in USD per Ounce) | $ / oz | 2,025 | ||||||||||
Peak Gold, LLC [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Equity Method Investment, Ownership Percentage | 30% | 30% | |||||||||
Liquidity loans outstanding | $ 0 | ||||||||||
Credit Agreement [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 70,000,000 | ||||||||||
Derivative, Nonmonetary Notional Amount, Mass (Ounce) | oz | 124,600 | ||||||||||
Debt Instrument, Applicable Margin, Before Project Complete | 6% | ||||||||||
Debt Instrument, Applicable Margin, After Project Complete | 5% | ||||||||||
Debt Instrument, Current Applicable Margin | 6% | ||||||||||
Debt Instrument, Commitment Fee, Percentage of Applicable Margin | 40% | ||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 5,000,000 | ||||||||||
Debt Instrument, Covenant, Historical Debt Service Coverage Ratio | 1.3 | ||||||||||
Debt Instrument, Covenant, Projected Debt Service Coverage Ratio | 1.3 | ||||||||||
Debt Instrument, Covenant, Loan Life Coverage Ratio | 1.4 | ||||||||||
Debt Instrument, Covenant, Discounted Present Value Cash Flow Coverage Ratio | 1.7 | ||||||||||
Debt Instrument, Covenant, Reserve Tail Ratio | 25% | ||||||||||
Debt Instrument, Covenant, Minimum Cash Balance | $ 2,000,000 | ||||||||||
Credit Agreement [Member] | Base Rate [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||||
Credit Agreement [Member] | Adjusted Term SOFR [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1% | ||||||||||
Credit Agreement [Member] | SOFR Adjustment [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.15% | ||||||||||
Credit Agreement [Member] | Term Loan Facility [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 65,000,000 | ||||||||||
Proceeds from Issuance of Long-Term Debt | 10,000,000 | 60,000,000 | |||||||||
Repayments of Long-Term Debt | $ 2,000,000 | ||||||||||
Debt Instrument, Unamortized Discount (Premium), Net | 2,300,000 | 1,700,000 | 2,400,000 | ||||||||
Debt Issuance Costs, Net | 1,600,000 | 2,100,000 | 2,400,000 | ||||||||
Long-Term Debt | 54,300,000 | 25,200,000 | |||||||||
Debt Instrument, Fair Value Disclosure | 58,000,000 | $ 30,000,000 | |||||||||
Interest Expense, Debt | 7,200,000 | 500,000 | |||||||||
Interest Expense, Debt, Excluding Amortization | 4,300,000 | 437,000 | |||||||||
Amortization of Debt Issuance Costs and Discounts | $ 2,900,000 | 94,000 | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 11.56% | 11.58% | |||||||||
Debt Instrument, Interest Rate, Effective Percentage, Amortization of Discount and Issuance Costs | 8.60% | 5.60% | |||||||||
Credit Agreement [Member] | Term Loan Facility [Member] | Subsequent Event [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Repayments of Long-Term Debt | $ 5,900,000 | ||||||||||
Credit Agreement [Member] | Term Loan Facility [Member] | Forecast [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Repayments of Long-Term Debt | $ 9,500,000 | $ 42,600,000 | |||||||||
Credit Agreement [Member] | Liquidity Facility [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | ||||||||||
Unsecured Convertible Debenture [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Interest Expense, Debt | 1,400,000 | ||||||||||
Interest Expense, Debt, Excluding Amortization | $ 1,400,000 | 1,300,000 | |||||||||
Amortization of Debt Issuance Costs and Discounts | $ 100,000 | $ 100,000 | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 0.60% | 0.60% | |||||||||
Debt Instrument, Face Amount | $ 20,000,000 | ||||||||||
Debt Instrument, Fee Percentage | 3% | ||||||||||
Share Price (in dollars per share) | $ / shares | $ 24.82 | ||||||||||
Stock Issued During Period, Shares, Debt Establishment Fee (in shares) | shares | 24,174 | ||||||||||
Investor Right Agreement, Ownership Percentage | 5% | ||||||||||
Investor Right Agreement, Maximum Percentage of Shares Transferable without Notifying in Advance | 0.50% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9% | 9% | 8% | ||||||||
Debt Instrument, Interest Paid in Cash, Percentage | 7% | ||||||||||
Debt Instrument, Interest Paid in Shares, Percentage | 2% | ||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | $ 30.5 | ||||||||||
Debt Instrument, Convertible, Number of Equity Instruments | EquivalentShares | 655,738 | ||||||||||
Debt Instrument, Covenant, Redeemable, Percentage of Par | 105% | ||||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130% | ||||||||||
Unsecured Convertible Debenture [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Fair Value Disclosure | $ 20,000,000 | $ 20,000,000 | |||||||||
Senior Secured Loan Facility [Member] | |||||||||||
Debt Disclosure [Line Items] | |||||||||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 600,000 | 400,000 | 500,000 | ||||||||
Debt Issuance Costs, Net | $ 200,000 | ||||||||||
Long-Term Debt | 19,600,000 | $ 19,500,000 | |||||||||
Interest Expense, Debt | $ 1,500,000 |
Note 14 - Derivatives and Hed_3
Note 14 - Derivatives and Hedging Activities (Details Textual) | 3 Months Ended | 9 Months Ended | |||
Aug. 02, 2023 oz $ / oz | Sep. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative Assets (Liabilities), at Fair Value, Net | $ (74,539,622) | $ (74,539,622) | |||
Gain (losses) on metal sales | $ 900,000 | $ 0 | $ 900,000 | $ 0 | |
Designated as Hedging Instrument [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Nonmonetary Notional Amount, Mass (Ounce) | oz | 124,600 | ||||
Underlying, Derivative Mass (in USD per Ounce) | $ / oz | 2,025 | ||||
Interest in Projected Production, Percentage | 42% | ||||
Peak Gold JV [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Share of gold percentage purchased to physically deliver gold as stipulated in hedge agreement | 30% |
Note 14 - Derivatives and Hed_4
Note 14 - Derivatives and Hedging Activities - Derivatives Not Designated as Hedging (Details) - Not Designated as Hedging Instrument [Member] | 9 Months Ended |
Sep. 30, 2024 oz $ / oz | |
Commodity Contract 2024 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume (Ounce) | oz | 6,274 |
Weighted average price (in USD per Ounce) | $ / oz | 2,025 |
Commodity Contract 2025 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume (Ounce) | oz | 62,400 |
Weighted average price (in USD per Ounce) | $ / oz | 2,025 |
Commodity Contract 2026 [Member] | |
Derivatives, Fair Value [Line Items] | |
Volume (Ounce) | oz | 41,100 |
Weighted average price (in USD per Ounce) | $ / oz | 2,025 |
Note 14 - Derivatives and Hed_5
Note 14 - Derivatives and Hedging Activities - Fair Values of Derivative Instruments on the Balance Sheet (Details) - Commodity Contract [Member] - Not Designated as Hedging Instrument [Member] - USD ($) | Sep. 30, 2024 | Dec. 31, 2023 |
Derivative Contract Asset, Current [Member] | ||
Gross Asset | $ 0 | $ 0 |
Gross amount offset, asset | 0 | 0 |
Net recognized asset | 0 | 0 |
Derivative Contract Liability, Current [Member] | ||
Gross Liability | (30,254,431) | (2,679,784) |
Gross amount offset, liability | 0 | 0 |
Net recognized liability | (30,254,431) | (2,679,784) |
Derivative Contract Asset, Noncurrent [Member] | ||
Gross Asset | 0 | 0 |
Gross amount offset, asset | 0 | 0 |
Net recognized asset | 0 | 0 |
Derivative Contract Liability, Noncurrent [Member] | ||
Gross Liability | (44,285,191) | (20,737,997) |
Gross amount offset, liability | 0 | 0 |
Net recognized liability | $ (44,285,191) | $ (20,737,997) |
Note 14 - Derivatives and Hed_6
Note 14 - Derivatives and Hedging Activities - Effect on Income Statement (Details) - Not Designated as Hedging Instrument [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Amount of unrealized and realized gain (loss) recognized in income | $ (28,844,179) | $ (2,725,411) | $ (57,023,000) | $ (2,725,411) |
Commodity Contract [Member] | ||||
Amount of unrealized gain (loss) recognized in income | (22,943,019) | (2,725,411) | (51,121,840) | (2,725,411) |
Amount of realized gain (loss) recognized in income | $ (5,901,160) | $ 0 | $ (5,901,160) | $ 0 |
Note 15 - Fair Value Measurem_3
Note 15 - Fair Value Measurement - Summary of Fair Value (Details) - USD ($) | Sep. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities - noncurrent | $ 740,700 | $ 0 |
Derivative Liability - current | 30,254,431 | 2,679,784 |
Derivative Liability - noncurrent | 44,285,191 | 20,737,997 |
Contingent consideration liability - noncurrent | 1,100,480 | 1,100,480 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contract asset - current | 0 | 0 |
Marketable securities - noncurrent | 740,700 | 0 |
Derivative Liability - current | 0 | 0 |
Derivative Liability - noncurrent | 0 | 0 |
Contingent consideration liability - noncurrent | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contract asset - current | 0 | 0 |
Marketable securities - noncurrent | 0 | 0 |
Derivative Liability - current | 30,254,431 | 2,679,784 |
Derivative Liability - noncurrent | 44,285,191 | 20,737,997 |
Contingent consideration liability - noncurrent | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative contract asset - current | 0 | 0 |
Marketable securities - noncurrent | 0 | 0 |
Derivative Liability - current | 0 | 0 |
Derivative Liability - noncurrent | 0 | 0 |
Contingent consideration liability - noncurrent | $ 1,100,480 | $ 1,100,480 |
Note 16 - Acquisitions (Details
Note 16 - Acquisitions (Details Textual) | Aug. 06, 2024 USD ($) | Jul. 10, 2024 USD ($) $ / shares shares | May 01, 2024 USD ($) | Sep. 30, 2024 $ / shares | Dec. 31, 2023 $ / shares |
Business Acquisition [Line Items] | |||||
Common stock, par value per share | $ / shares | $ 0.01 | $ 0.01 | |||
Highgold Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Asset acquisition, total consideration | $ 35,000,000 | ||||
Asset acquisition, consideration in shares | 33,800,000 | ||||
Asset acquisition, consideration in direct transactions costs | $ 1,200,000 | ||||
Avidian Gold Corp. [Member] | |||||
Business Acquisition [Line Items] | |||||
Asset acquisition, total consideration | $ 2,100,000 | ||||
Asset acquisition, consideration in shares | 1,700,000 | ||||
Asset acquisition, cash consideration | 400,000 | ||||
Contingent payable | 1,000,000 | ||||
Asset acquisition, liability recognized for deferred consideration | 0 | ||||
Asset Acquisition, recognized amount for deferred consideration | 0 | ||||
Asset acquisition, fair value | $ 0 | ||||
HighGold Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Outstanding equity interests acquired | 100% | ||||
Agreement date | May 01, 2024 | ||||
HighGold Acquisition [Member] | Contango Shareholders [Member] | |||||
Business Acquisition [Line Items] | |||||
Shareholders ownership percentage | 85.90% | ||||
Avidian Gold Corp. [Member] | |||||
Business Acquisition [Line Items] | |||||
Stock purchase agreement date | May 01, 2024 | ||||
Percentage of Ownership Purchase | 100% | ||||
Initial consideration | $ 2,400,000 | ||||
Contingent payment | $ 1,000,000 | ||||
Acquisition date | Aug. 06, 2024 | ||||
Total equity value | $ 1,663,539 | ||||
Shares withheld at closing | 207,945 | ||||
Cash consideration | 400,000 | ||||
Initial purchase price | 2,063,539 | ||||
Contango Mining Canada Inc. [Member] | HighGold Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Shareholders ownership percentage in combined company | 14.10% | ||||
Deposit [Member] | Avidian Gold Corp. [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | 50,000 | ||||
Due on Settlement of Withholding Contingency [Member] | Avidian Gold Corp. [Member] | |||||
Business Acquisition [Line Items] | |||||
Shares to be paid upon settlement of withholding contingency | 150,000 | ||||
Due on or Before the 6-month Anniversary | Avidian Gold Corp. [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 200,000 | ||||
Common Stock [Member] | HighGold Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Exchange ratio | 0.019 | ||||
Common stock, par value per share | $ / shares | $ 0.01 | ||||
Shares issued | shares | 1,698,887 | ||||
Value of share | $ 33,800,000 |
Note 17 - General and Adminis_3
Note 17 - General and Administrative Expenses - Components of General and Administrative Expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
General and Administrative Expense [Abstract] | ||||
Marketing and investor relations | $ 183,181 | $ 57,349 | $ 434,080 | $ 238,708 |
Office and administrative costs | 232,602 | 68,813 | 347,651 | 215,356 |
Insurance | 352,942 | 259,798 | 962,118 | 750,174 |
Professional fees | 236,372 | 457,680 | 941,984 | 1,249,259 |
Regulatory fees | 161,449 | 145,006 | 345,731 | 317,598 |
Salaries and benefits | 500,550 | 819,077 | 1,497,079 | 1,740,765 |
Stock-based compensation | 660,985 | 739,784 | 1,973,164 | 2,072,650 |
Travel | 101,968 | 48,720 | 288,643 | 146,430 |
Director fees | 181,576 | 171,250 | 481,576 | 527,500 |
Total | $ 2,611,625 | $ 2,767,477 | $ 7,272,026 | $ 7,258,440 |