SCHEDULE: Queen's Road Capital Boosts Contango ORE Stake

Queen's Road Capital Investment Ltd. has disclosed a 4.39% beneficial ownership in Contango ORE, Inc., primarily through convertible debentures.

Summary

• Queen's Road Capital Investment Ltd. beneficially owns 685,034 common shares of Contango ORE, Inc.
• This ownership represents 4.39% of Contango ORE, Inc.'s common shares outstanding as of December 31, 2025.
• The total common shares outstanding used for calculation were 14,962,410.
• The beneficial ownership includes 29,297 currently outstanding common shares.
• It also includes 655,737 common shares acquirable upon conversion of US$20 million principal amount of five-year, 9% unsecured convertible debentures.
• These debentures are convertible at a price of US$30.50 per common share.
• A portion of the interest (2% per annum) on the debentures will be paid in common shares, issued at the 20-day volume weighted average trading price (VWAP) preceding the interest payment date.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive development, as a significant capital investment from a specialized firm like Queen's Road Capital can be seen as a vote of confidence in Contango ORE's future, despite the potential for minor dilution from interest payments in shares.

Positives

• A significant investment by Queen's Road Capital Investment Ltd. indicates confidence in Contango ORE, Inc.'s prospects.
• The convertible debentures provide Contango ORE, Inc. with US$20 million in financing.

Negatives

• Future interest payments in shares (2% per annum) could lead to dilution for existing shareholders.

Risks

• Potential dilution for existing shareholders from the issuance of common shares as partial interest payments on the debentures.

Future Outlook

The filing indicates that Queen's Road Capital Investment Ltd. will receive additional common shares in the future as partial payment for interest on the convertible debentures, based on a 20-day VWAP calculation.

Management Comments

• "The securities referred to above were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under ?? 240.14a-11."

Industry Context

StockSavvy.ai notes that a significant investment from a specialized capital firm like Queen's Road Capital, particularly through convertible debt, can signal a strategic endorsement of Contango ORE's long-term potential. Such investments are common in the mining and exploration sector, providing growth capital while offering the investor upside participation through equity conversion.

Stakeholder Impact

• Shareholders: Potential for future dilution from the conversion of debentures and the issuance of shares for interest payments. However, the investment provides capital for the company's operations.
• Creditors: Queen's Road Capital is a creditor through the debentures, which are unsecured.

Next Steps

• Quarterly interest payments on the debentures on January 31, April 30, July 31, and October 31.
• Future issuance of common shares to Queen's Road Capital as partial interest payment.
• Potential conversion of US$20 million principal amount of debentures into common shares at US$30.50 per share.

Key Dates

Keywords

Contango ORE, Queen's Road Capital, Schedule 13G, convertible debentures, beneficial ownership, mining, exploration, Alaska, equity investment, SEC filing