18th Jun 2020 18:03
(Alliance News) - Contango Holdings PLC on Thursday completed a reverse takeover through the acquisition of a 70% stake in the Lubu coalfield project in Zimbabwe, as the former cash shell started life as a listed mining company.
Back in January, Contango had said it intended to raise GBP1.4 million through a share placing, which will go towards bringing block B2 at the Lubu coalfield in Zimbabwe back into production before the end of 2020.
Contango had said it would issue 28.0 million shares at a price of 5.0 pence per share. The stock closed at 4.425p on Thursday.
On Thursday, the company said 203.1 million shares started trading on the Main Market of the London Stock exchange.
Carl Esprey, executive director of Contango Holdings, said: "I am delighted to have successfully brought this asset to market and I am confident that the work conducted on Lubu in recent years will translate to material value for shareholders in the near future.
"I look forward to providing further updates in the coming weeks and months as we begin our initial activities readying the site for production, specifically the refurbishment and development of supporting facilities, ground clearance and removal of overburden of the 20-acre area that comprises the initial mining zone within Block B2 of Lubu."
By Arvind Bhunjun; [email protected]
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