REG - Contango HoldingsPLC - Response re Speculation

Contango HoldingsAnnouncement

22/06/2023 13:00

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RNS Number : 6248D  Contango Holdings PLC  22 June 2023

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

22 June 2023

Contango Holdings PLC

('Contango' or the 'Company')

 

Response re Speculation

 

Contango Holdings Plc, the London listed natural resource development company,
notes recent speculation with respect to its offtake with AtoZ Investments
(Pty) Ltd ('AtoZ'). Given the subsequent volatility in the share price, the
Company seeks to clarify as follows:

 

Contango's subsidiary, Monaf Investments, entered into an offtake arrangement
with AtoZ in June 2022 for the sale of 10,000 tonnes per month of washed
coking coal at mine gate, for not lower than the MMCZ price in Zimbabwe, which
has remained constant at $120 per tonne throughout this period. For the
avoidance of doubt this contract remains in effect.

 

However, the offtake with AtoZ is not exclusive and Contango has the right to
deliver coal to an alternate buyer should it decide to. Since entering into
the agreement with AtoZ the Company has received a number of approaches from
other parties interested in offtakes for not only coking coal, but also coke
and subsequent by-products.

 

More recently, the board has been focusing its efforts on completing
discussions with a global multi-national company, currently under the MOU
announced in December 2022.  The Company's primary objective is to become a
fully integrated producer of coke product. These negotiations are commercially
sensitive and are expected to reach a conclusion as the Company approaches
first revenue imminently. The Company reassures its shareholders that there
are a number of groups that wish to purchase coking coal product from Lubu.

 

The Company will make formal disclosures on partnerships and offtakes as
appropriate through RNS announcements. Investors are also invited to attend
the upcoming Presidential site visit in July 2023, at which point the Company
will have made its first sales.  As previously announced, investors are
encouraged to contact contango@stbridespartners.co.uk
(mailto:contango@stbridespartners.co.uk) for more details relating to the site
visit.

 

 

**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

 

 

 

 

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