Contango Holdings PLC - metallurgical coal producer focused on its 70%-owned Muchesu coal project in Zimbabwe - Raises GBP940,000 through the placing of 94.0 million new shares at a price of 1 pence each, now representing around 17% of the company's total share capital. Says that the fundraise will strengthen its working capital position and allow ongoing contract discussions to materialise, but that the proceeds are insufficient to repay its outstanding shareholder loans of GBP2.7 million.
Contango is in discussions with "numerous potential offtake partners" for coal products produced at its Zimbabwe site. The company expects agreements to be reached in the second quarter of 2024. The Contango board is also considering joint ventures or an outright sale of its Muchesu project, but says that no formal proposal has been made to this end.
Current stock price: 0.98 pence per share, down 7.1% in London on Monday morning
12-month change: down 79%
By Hugh Cameron, Alliance News reporter
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Contango Hdg (CGO)