Contango Holdings PLC £1.4m Conditional Placing & Acquisition Update (5141A)
January 22 2020 - 1:00AM
UK Regulatory
TIDMCGO
RNS Number : 5141A
Contango Holdings PLC
22 January 2020
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
22 January 2020
Contango Holdings Plc
("Contango" or the "Company")
Conditional Oversubscribed Placing to raise GBP1.4 million
Acquisition Update
Contango Holdings Plc ("Contango" or the "Company"), a company
formed to acquire a controlling interest in a company or business
in the natural resources sector, is pleased to announce that it has
raised GBP1.4 million (before expenses) through a conditional
placing (the "Placing") of 28,000,000 New Ordinary Shares ("Placing
Shares") of GBP0.01 each to new and existing investors at 5 pence
per Placing Share.
Following the completion of the conditional Placing the Company
now anticipates being in a position to shortly issue a final
Prospectus subject to FCA approval setting out details of its
previously announced purchase of the Lubu Coalfield ("Lubu" or the
"Lubu Project") from Consolidated Growth Holdings ("CGH") (the
"Transaction"). This will include a notice of General Meeting
seeking shareholder approval of both the Placing and the
Transaction. Upon the subsequent approval of both at the General
Meeting, expected to be held in February 2020, the Placing will
become unconditional and Contango will be readmitted to
trading.
A further announcement setting out additional details of the
Transaction and expected timetable to readmission to trading on the
London Stock Exchange will be issued in the near term, along with
the full Prospectus.
Overview of Lubu Project
Lubu is expected to be a near-term metallurgical coal producer.
Approximately $20M has been spent by previous owners at Lubu,
including 12,000m of drilling, which has identified a NI 43-101
compliant resource of 1.3Bn tonnes. In 2019, CGH and Contango
completed an extensive work programme including additional drill
holes and assays to better understand the range of coal products
from a small proportion of Block B2 at or near surface. Upon
closing of the acquisition, Contango will focus on developing a
targeted area of the B2 Block which is amenable to mining from
surface down to a maximum depth of 47m that contains seams of
metallurgical coal product. Also, The Company will look to finalise
an agreement with contract miners and enter into an offtake
agreement to sell metallurgical coal in the Southern Africa region.
On that basis and following recent work programme in 2019 it is the
Board's belief that upon the successful close of the GBP1.4 million
capital raise, Contango should have sufficient funds to bring Block
B2 at Lubu into production before the end of 2020.
Additional details on the Lubu Project can be found at the
recently updated Contango website
(https://contango-holdings-plc.co.uk/).
* ENDS *
For further information, please visit
www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc E: info@contango-holdings-plc.co.uk
Brandon Hill Capital Limited T: +44 (0)20 3463 5000
Financial Adviser & Broker
Jonathan Evans
St Brides Partners Ltd T: +44 (0)20 7236 1177
Financial PR & Investor Relations
Catherine Leftley/Cosima Akerman
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END
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