Contact Gold (C.V) has bought itself some time before raising money by selling the Golden Cloud and Santa Renia gold exploration properties in Nevada to Waterton Precious Metals for cash proceeds of C$635,000. This transaction does make sense as Contact is now fully focusing on the Pony Creek project where it has discovered gold mineralization all over the project, up to several kilometers away from the Bowl Zone, which hosts the historic resource estimate of 1.43 million ounces of gold at 1.5 g/t.
As Contact Gold very likely wouldn’t have designed an exploration program for both properties in the near-term future, monetizing them does make a lot of sense. The cash inflow does provide Contact Gold with more breathing room to wait for improved market conditions before raising money. As you’re aware, the company has filed a base shelf prospectus, and we are expecting Contact Gold to raise money as soon as it receives approval from the SEC (which is necessary considering Contact Gold is a US domiciled company).