19th Oct 2020 18:08
Contango Holdings PLC - natural resource development company - Acquires Garalo gold project in Mali for USD1.0 million. Project is expected to start production in the second half of 2021, and company is targeting production scenario of 30,000 ounces per annum.
Contango raises GBP1.8 million via oversubscribed placing of 36.0 million shares at a price of 5.0 pence each, which will go towards providing enough funds to bring Garalo into production.
"Once Garalo is in production, there should be a significant opportunity to acquire similar projects nearby, which have typically been overlooked by the larger operating companies in the region that are developing multi-million ounce deposits. This, coupled with the prospectivity that remains unexplored at Garalo, should in due course ensure a significant boost to reserves and mine life, which already stands at over 10 years," said Executive Director Carl Esprey.
Current stock price: 5.50 pence
Year-to-date change: up 29% since mid-June
By Dayo Laniyan; [email protected]
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