2nd Aug 2019 14:23
(Alliance News) - Contango Holdings PLC said Friday it has provided a further USD130,000 to Consolidated Growth Holdings Ltd to progress a project in Zimbabwe which Contango is currently in the process of acquiring.
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.
On Friday, Contango agreed to pay a further USD130,000 to Consolidated Growth in order that it can continue to progress the project. This further investment demonstrates the "continued expectation of a successful close to the transaction", Contango explained.
Should the Lubu acquisition fail to complete by Christmas Eve then Consolidated Growth will be obliged to repay the USD130,000, potentially along with additional interest payments.
The additional investment follows Contango paying USD120,000 to Consolidated Growth in late May for the same purpose and with the same terms.
Shares in Contango were untraded on Friday, last having traded at 3.50 pence.
Related Shares:
Contango Hdg