RCS - Contango HoldingsPLC - Operational Update

Contango HoldingsAnnouncement

02/05/2024 07:00

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RNS Number : 9142M  Contango Holdings PLC  02 May 2024

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

2 May 2024

Contango Holdings PLC

("Contango" or the "Company")

 

Operational Update

 

Contango Holdings Plc, a company focused on the development of the +2 billion
tonne Muchesu coal project in Zimbabwe ("Muchesu" or the "Mine"), is pleased
to announce that following the capital raise of £940,000 ("Placing") in early
April 2024, the Company has now been able to continue operations on site to
satisfy requests from potential offtake customers for samples.

 

Coking and Industrial Coal Operations

Since the Placing, 120 tonnes of product have been mined, screened and washed
for two new potential industrial customers in the southern African region.
These potential off takers have arranged to collect the two 60-tonne samples
this week. Additional samples had already been sent to other identified
potential off takers prior to the Placing.

 

Collectively ongoing offtake discussions represent demand of more than 50,000
tonnes per month. Whilst the Company does not expect all these discussions to
result in a positive outcome, the Company reasonably believes several
contracts are likely to materialise from these interested parties during this
quarter to June 2024, along with ongoing discussions with respect to coking
coal offtake.

 

Thermal Coal

A further 250 tonnes of thermal coal has now been extracted and will next week
be collected by a potential offtake partner, which will subsequently undertake
a 'burn test'.  Assuming the results are as expected, the Company believes it
will be able to enter into a sizeable long-term thermal offtake contract.

 

Corporate Update

In conjunction with these operational developments the Company remains engaged
with several groups which have expressed interest in a potential Joint Venture
and / or purchase of the mine. The Company continues to supply further
information to these parties as part of their ongoing due diligence.

 

The Company will provide shareholders with updates on both operational and
corporate developments as they materialise. Recent operational videos and
images following the Placing will shortly be uploaded to the Company's website
and social media accounts, in addition to some images included below, as
further background for shareholders.

 

 Coal being screened and then washed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Screened and Washed Coal Awaiting Collection:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**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 / Charlotte Page

 

 

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