Contango Holdings PLC Year-End Operations Update
December 29 2020 - 2:00AM
RNS Non-Regulatory
TIDMCGO
Contango Holdings PLC
29 December 2020
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
29 December 2020
Contango Holdings Plc
('Contango' or the 'Company')
Year-End Operations Update
The Company is pleased to provide a brief update on operations
at its Lubu Coking Coal Project ("Lubu") in Zimbabwe and the Garalo
Gold Project ("Garalo") in Mali.
Lubu, Zimbabwe
The Binga Camp, the base of operations for the first phase of
development of Lubu, has been successfully rehabilitated over the
last month, including upgrades to access.
The Company can advise it consequently expects to be able to
open the pit next month. This will be a material event for
Contango, helping finalise ongoing offtake discussions for coking
coal. In addition, several multi-national companies have requested
significant bulk samples, which will also provide short-term
revenue to the Company, to enable them to assess the viability of
constructing coke plants at Lubu. The manufacture of coke at Lubu
would command a significantly higher price than the Company's
coking coal, which is already considered to be highly economic.
A comprehensive update on Lubu is expected to be provided next
month once the pit is open.
Garalo, Mali
Following the release of an Independent Technical Report (the
"Report") on Garalo, which saw the potential gold resource increase
by +460% to 1.8Moz, both in-house and external geologists have
continued with further assessment of the deposit. Whilst this has
been focused principally on the identified resource within the
Report, additional works have also been undertaken on some of the
potential targets identified in the Report, outside of the
potential resource envelope, with some highly encouraging
results.
This work is on-going and the Company will provide a further
update next month.
Carl Esprey, Executive Director of Contango Holdings, said: "I
am delighted with the progress we have made this year, particularly
during the second half. We now have two projects that are expected
to provide production and healthy margins within a year. Both have
significant scalability and longevity offering further upside.
"Our recent capital raises, coupled with expected non-equity
financing solutions such as royalty streams and offtake financing,
have given us the wherewithal to bring these two assets into
production and provide significant cashflows, in turn enabling both
returns of capital to shareholders and also the further expansion
and development of our projects.
"I look forward to 2021 with great optimism and confidence and
thank our shareholders for their continued support in what has been
a difficult and unprecedented year across the world."
**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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