Contact Gold (C.V) has confirmed its large shareholder Waterton Precious Metals has sold its entire position in Contact. Apparently there was a diverse group of buyers described by Contact Gold as ‘experienced precious metals investors’ and ‘insiders’ that took down the entire block of just over 100 million shares at a price of C$0.015 per share for a total consideration of C$1.5M.
Although Contact Gold acquired its Pony Creek property from Waterton (which is how Waterton ended up with a block of Contact stock), it felt like the presence of Waterton with a controlling block of stock (the initial position of Waterton in Contact increased after the conversion of the preferred shares into common shares) was holding the stock back. With the 100M+ share overhang removed and the controlling block of shares now redistributed into the hands of new and existing shareholders, let’s hope Contact Gold’s upcoming drill program at Green Springs (funded by joint venture partner Centerra Gold (CG.TO) (CGAU) will spark a renewed interest in the stock.
Disclosure: The author has a long position in Contact Gold. Contact is a sponsor of the website. Please read our disclaimer.
