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23 Dec 2019 16:34
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources
23 December 2019
Contango Holdings Plc
('Contango' or the 'Company')
Acquisition Update & Extension to SPA
Contango Holdings Plc ('Contango' or the 'Company') is pleased to provide an update to shareholders regarding its proposed acquisition of the Lubu Coalfield project in Zimbabwe ('Lubu Coalfield') from Consolidated Growth Holdings Limited ('CGH').
The Company has advanced a further US$63,314,000 to CGH during December in order to continue the work programme at the Lubu Coalfield. Contango has now advanced a total of $356,314 to CGH since May 2019 to advance the Lubu asset. The funds have been principally deployed on drilling holes and their subsequent assay, to determine the coal product characteristics for the purposes of marketing the coals to potential buyers in anticipation of commencing mining and production from H2 2020.
The Company and CGH have mutually agreed an extension to the Share Purchase Agreement entered into with CGH, whereby in the event the transaction does not unconditionally complete by, at the latest, 24 December 2020, all funds advanced by Contango to CGH are to be returned.
However, the Company now expects to be in a position to close the re-listing process and complete the capital raise (as previously announced) in January 2020, following the festive period, subject to all resolutions being passed at a General Meeting to be convened.
* ENDS *
For further information, please visit www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc | E: info@contango-holdings-plc.co.uk |
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Brandon Hill Capital Limited Financial Adviser & Broker Jonathan Evans | T: +44 (0)20 3463 5000 |
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St Brides Partners Ltd Financial PR & Investor Relations Catherine Leftley/Cosima Akerman | T: +44 (0)20 7236 1177 |
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