REG - Contango HoldingsPLC - Muchesu Project Update

Contango HoldingsAnnouncement

20/12/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231220:nRST4400Xa&default-theme=true

RNS Number : 4400X  Contango Holdings PLC  20 December 2023

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

20 December 2023

Contango Holdings PLC

("Contango" or the "Company")

 

Muchesu Project Update

 

Contango Holdings Plc, the producing London listed natural resource
development company, is pleased to confirm it has received approximately
US$116,000 from a large multi-national company ("MNC") as payment for the
previously reported circa 1,000 tonne bulk sample of washed coking coal. Over
half of the bulk sample has been mined, screened, washed and is ready for
collection, with the balance due later this month.

 

Yesterday the MNC commenced collection of this coal from mine gate ahead of
delivery to its facilities in South Africa for final tests in their own coke
batteries. Given historic test work undertaken by the MNC, as well as
Contango's ongoing verification of the coal quality and characteristics of the
bulk sample, the Company believes there is a high probability of entering into
a long-term offtake with this MNC following the successful completion of their
tests in January 2024. As previously reported, the MNC has expressed a need
for a minimum of approximately 7,000 tonnes per month. However, current
discussions are with respect to a larger long-term contract, which the board
is inclined to progress with given the complications around the current
offtake partner, TransOre, which has not yet provided further orders or
payment for washed coking coal as envisaged under the July 2023 offtake
agreement.

 

In addition, the Company remains in discussions with other potential off take
partners of both coking and industrial coal as per the update of 26 October
2023, which would be envisaged as complementary to any contract with the MNC.

 

Photos of recent and ongoing operations can be found below and also on the
Company's social media platforms.

 Screening of coking coal prior to washing.

Approximately 500 tonnes of washed coking coal ready for collection by MNC

Loading washed coking coal product for MNC

Loading trucks with washed coking coal product

First five trucks leaving Muchesu with coking coal product

 

**ENDS**

 

 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

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFEWSWSEDSESE