5th Nov 2019 17:53
(Alliance News) - Contango Holdings PLC said on Tuesday it has provided a further USD51,314 to Consolidated Growth Holdings Ltd to progress its work at the Lubu coalfield project in Zimbabwe, which Contango is in the process of acquiring.
The miner said it has recently advanced USD23,000 and USD28,314 to Consolidate Growth, so that the company could continue to progress its work at the Lubu project.
The transaction demonstrates Contango's "continued expectation of a successful close" to its proposed acquisition of Lubu coalfield, the company said.
Contango has now advanced a total of USD301,314 to Consolidate Growth. If the acquisition of Lubu is not unconditionally completed by December 24 at the latest, funds advanced to Consolidated Growth are to be returned, the company noted.
In April, Contango agreed a GBP6.5 million all-share deal to buy the Lubu thermal and coking coalfield project in Zimbabwe from Consolidated Growth. The deal had originally been planned to close in the second quarter of 2019.
Contango shares are currently suspended pending re-admission to trading following completion of the reverse takeover.
By Loreta Juodagalvyte; [email protected]
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