Contango just announced that they will be spinning off their gold and rare earth mineral exploration company to shareholders. This seems to make sense, as many were concerned with this recent investment. Now investors can choose if they wish to participate in this new venture. True to form, Peak "intend[s] to run a bare-bones G&A effort" with CORE. In many ways the business model will be identical to Contango's oil and gas business. It seems Peak will make small calculated bets that will pay off handsomely if successful.
Disclosure: Long Contango (MCF)
