22nd Jan 2020 11:59
(Alliance News) - Contango Holdings PLC said Wednesday it intends 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 - a company formed to acquire a controlling interest in a natural resources-focused business - will issue 28.0 million shares at a price of 5.0 pence per share.
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.
Once the placing is completed, Contango will be in a position to issue a final prospectus detailing the acquisition of the Lubu coalfield, and call a general meeting to get shareholder approval.
The meeting is expected to be held in February, and should shareholder approval be granted Contango will resume trading.
Shares in Contango are currently suspended in London.
By Dayo Laniyan; [email protected]
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