REG - Contango HoldingsPLC - MOU Signed with a Leading Multi-National Company

Contango HoldingsAnnouncement

05/12/2022 07:00

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RNS Number : 4852I  Contango Holdings PLC  05 December 2022

 

 

Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources

 

5 December 2022

Contango Holdings Plc

("Contango" or the "Company")

 

Non-Binding Memorandum of Understanding signed with a leading Multi-National
Company

 

Contango Holdings Plc is pleased to announce it has entered into a non-binding
Memorandum of Understanding ("MOU") with a leading Multi-National Company
("MNC") with respect to the Company's Muchesu Coal Project, the in-country
name of the Lubu Coal Project, in Zimbabwe.

 

This MOU outlines a framework for collaboration across not only coking coal,
but also in the manufacture of coke and follows several site visits and a
preliminary analysis of a 50kg sample of Muchesu washed coking-coal. The
intention is to undertake a stage-gated due diligence exercise which will look
at all aspects that would underpin either a coking-coal offtake agreement, or
the possibility of establishing a coking plant adjacent to the Muchesu Mine.
Based on current timelines, the Company would aim to conclude the first phase
(concept / pre-feasibility) of the due diligence exercise in Q1 2023 after
which a decision will be made if, and how best, to proceed to the subsequent
phases.

 

Carl Esprey, Chief Executive Officer of Contango Holdings, said:

 

"The signing of this MOU is hugely material for Contango. The MNC is active in
Zimbabwe and is a world leader in its field. I believe their interest in the
Muchesu Coal Project is testament to its highly attractive characteristics,
both in terms of scale and coal quality.

 

"The due diligence process is underway, and one of the first steps has been to
deliver a 1t coking-coal sample to the MNC for further testing. The ongoing
discussions are focussed on the viability of a long-term offtake and the
potential of a joint venture partnership in establishing coke batteries and
developing an underground mine.

 

"Given that Muchesu has a +2bn tonne resource there is plenty of scope for
multiple offtakes across our whole suite of coal products - the MOU does not
focus on thermal coal for instance.

 

"I look forward to updating the market on further progress."

 

**ENDS**

 

For further information, please visit www.contango-holdings-plc.co.uk or
contact:

 

 Contango Holdings plc                   E: contango@stbridespartners.co.uk

 Chief Executive Officer

 Carl Esprey

 Tavira Financial Limited                T: +44 (0)20 7100 5100

 Financial Adviser & Broker

 Jonathan Evans

 St Brides Partners Ltd                  T: +44 (0)20 7236 1177

 Financial PR & Investor Relations

 Susie Geliher / Charlotte Page

 

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