Contango Holdings PLC Directors' Dealings & Holdings in Company (8437C)
October 22 2020 - 2:00AM
UK Regulatory
TIDMCGO
RNS Number : 8437C
Contango Holdings PLC
22 October 2020
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
22 October 2020
Contango Holdings Plc
('Contango' or the 'Company')
Directors' Dealings & Holdings in Company
Overview
-- RAB Capital purchases 12.54% of total issued share capital
-- Carl Esprey, CEO of Contango, acquires 1.75% of total issued share capital
Contango Holdings Plc, the London listed natural resource
company developing the Garalo Gold Mine in Mali and the Lubu
Metallurgical Coal Project in Zimbabwe, can today advise on two
significant share acquisitions.
Specialist mining investor RAB Capital has today increased its
holding to a total 30,040,699 ordinary shares in the Company,
representing 12.54% of the current issued share capital. This was
achieved via the purchase of 5,940,669 ordinary shares previously
held by Philip Richards, a Director of the Company, the previously
disclosed subscription of 7,000,000 ordinary shares in the recent
Placing (which were admitted to trading today), the acquisition of
15,000,000 shares from Consolidated Growth Holdings ('CGH') as well
as a further share purchase of 2,100,000 shares. Philip Richards is
the founder and the controlling 64.9% shareholder of RAB Capital
and these transactions have consolidated his holding into one
entity.
In addition, Carl Esprey, Chief Executive Officer of Contango,
has acquired 4,000,000 shares in the Company, also from CGH,
bringing his current holding to 4,200,000, representing 1.75% of
the current issued share capital of the Company .
To facilitate the material increase in holdings by RAB Capital
and the share acquisition by Company CEO Carl Esprey, the Company
and Brandon Hill Capital exercised its right to waive the current
lock-in agreement with CGH that was entered into during the IPO in
June 2020. The waiver of the lock-up is only applicable to the
disposal of the combined 19,000,000 shares to RAB Capital and Carl
Esprey. CGH's revised holding of 109,849,961 ordinary shares,
representing 45.84% of the current issued share capital will remain
under the lock-up agreement until June 2021.
As Philip Richards and Carl Esprey are directors of the Company,
the acquisition by RAB Capital and Carl Esprey from CGH is deemed a
related party transaction as defined under DTR 7.3. The independent
director Roy Pitchford (Non-Executive Chairman) considers the terms
of the transactions fair and reasonable insofar as the Company's
shareholders are concerned.
Philip Richards commented, "I am very pleased that RAB Capital
has now become a substantial shareholder in Contango. We expect
both of its assets to be generating cashflow within a year or so,
and thereafter we expect a significant and growing dividend yield
in line with the company policy of paying out around 50% of net
profit in dividend."
Andrew Groves, CEO of CGH commented: "We remain very supportive
and pleased with the progress Contango have made in 2020. We have
agreed to dispose of a small portion of our holding given the
underlying buyers. We remain a substantial shareholder with 45.84%
and look to the future of Contango with great optimism."
Carl Esprey, CEO of Contango, commented: "Having successfully
completed an oversubscribed capital raise to fund our projects into
production, these are very exciting times for Contango. I see
significant upside from the current share price levels and am happy
to have now built a more meaningful direct shareholding in the
Company following my appointment earlier this year."
**ENDS**
For further information, please visit
www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc E: info@contango-holdings-plc.co.uk
Chief Executive Officer
Carl Esprey
Brandon Hill Capital Limited T: +44 (0)20 3463 5000
Financial Adviser & Broker
Jonathan Evans
St Brides Partners Ltd T: +44 (0)20 7236 1177
Financial PR & Investor Relations
Susie Geliher / Cosima Akerman
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END
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