REG - Contango HoldingsPLC - Statement re Share Price Movement

Contango HoldingsAnnouncement

08/12/2023 12:30

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RNS Number : 2171W  Contango Holdings PLC  08 December 2023

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

8 December 2023

Contango Holdings PLC

("Contango" or the "Company")

 

Statement re Share Price Movement

 

Contango Holdings Plc, the producing London listed natural resource
development company, notes the decline in share price over the last week,
including a notable decrease today. The Board is not aware of any changes
since its last update of 26 October 2023 that would warrant this price action,
nor of any material change in circumstances that would require disclosures.

 

Furthermore, the Company notes speculation it is currently looking to raise
funds through an equity placement. The Company can confirm it is not currently
undertaking an equity raise, nor has it sought to do since its last capital
raise of £7.5M at 6 pence per share in Q4 2022, instead it has sourced
non-convertible shareholder loans from existing supportive shareholders, as
previously reported, to provide working capital ahead of consistent sales.

 

The Company is focused on delivering 1,000t of washed coking coal to a large
multi-national company ("MNC") this month. The MNC will pay for this bulk
sample in advance and the Company expects to be able to deliver the subsequent
tonnage for collection by the MNC within the next two weeks. From there the
MNC will take the tonnes to its facilities in South Africa to pass through its
own coke batteries. Given testwork previously undertaken by the MNC, the
Company believes there is a high probability that subsequently a long-term
offtake contract will be entered into with this Tier 1 consumer, which has
expressed a minimum need of 6,700 tonnes per month of washed coking coal from
Muchesu, but has the capacity to enter into a contract materially larger
dependent on results from the 1,000t bulk sample and production capacity at
Muchesu.

 

Finally, as reported on 26 October 2023, the Company received a non-binding
proposal for the potential acquisition of its assets. The company making the
proposal has subsequently drilled three holes at site, at its own cost, as
part of its due diligence process and is reviewing the results. Further
updates will be made as appropriate. For the avoidance of doubt the company
potentially looking at making an offer for the Company's assets, is different
to the MNC currently taking the 1,000 tonnes bulk sample.

 

**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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