Contango Silver & Gold converts gold hedges to debt, cuts rate

Contango Silver & Gold Inc. (NYSE American: CTGO) has amended its credit facility to convert 15,000 ounces of hedged gold into $33.0 million of debt, according to a company statement issued July 6, 2026.

The amended credit facility carries an interest rate of approximately 7.40%, down from approximately 8.9%, with no restructuring fee. The hedged ounces carried an average strike price of $1,935, with maturity dates between March and June 2027.

As part of the transaction, the company paid $715,000 to purchase 15,000 put contracts with a strike price of $3,100 per ounce, with maturities in March and June 2027. That cost has been added to the debt balance.

The total principal of the amended credit facility increased from $12.6 million to $46.3 million. Scheduled repayments are as follows:

• September 30, 2026 — $1 million
• December 31, 2026 — $1 million
• March 31, 2027 — $15.5 million
• June 30, 2027 — $28.8 million

CEO Rick Van Nieuwenhuyse stated: "By converting the remaining 15,000 ounces of hedge contracts into debt, we have successfully removed the ceiling on our future cash flows from gold production." He added that the company retains flexibility to repay the debt at any time.

Contango holds a 30% interest in the Peak Gold joint venture, which operates the Manh Choh project in Alaska. The remaining 70% is owned by KG Mining (Alaska), Inc., a subsidiary of Kinross Gold Corporation, which serves as operator.

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