Contango Holdings PLC Acquisition of Neighbouring Ntiela Gold Project (2503R)
March 05 2021 - 2:00AM
UK Regulatory
TIDMCGO
RNS Number : 2503R
Contango Holdings PLC
05 March 2021
Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural
Resources
5 March 2021
Contango Holdings Plc
('Contango' or the 'Company')
Acquisition of Neighbouring Ntiela Gold Project
Contango Holdings Plc, the London listed natural resource
development company, is pleased to announce the acquisition of the
Ntiela Gold Project ("Ntiela") in Mali, which is contiguous to the
Company's existing Garalo Gold Project ("Garalo"). The acquisition
consolidates Contango's existing mineralised footprint in this
globally significant gold producing region of southern Mali.
Highlights
-- The 100km(2) Ntiela Gold Project borders the western boundary
of Garalo, which recently saw a +460% resource potential uplift to
1.8Moz
-- Work completed has identified the extension of at least two
target zones from Garalo to Ntiela
-- Existing data from soil geochemistry studies on Ntiela also
suggests a strong correlation with the data the Company has been
collecting at the G3 target on Garalo, pointing to the potential
for high-grade gold mineralisation on the Ntiela licence
-- Exploration activities at Ntiela are expected to commence in
Q2 2021 to follow up on these identified and highly prospective
targets, ensuring synergies with the ongoing work at Garalo
-- A maiden NI 43-101 report on Garalo is due to be published
this month incorporating data from the work undertaken during Q1
2021, which has focused on the southern G3 target area
Carl Esprey, Chief Executive Officer of Contango Holdings, said:
"Our Garalo Gold Project is on track to deliver first gold by the
end of this year and I am pleased to report that it continues to
yield some incredibly encouraging results for us. Our decision to
increase our mineralised footprint in this area marks an important
step for Contango as we look to establish ourselves as an emerging
development and production company in the area, with a pipeline of
expansion opportunities.
"We look forward to providing an NI 43-101 update on Garalo this
month, which we expect will build on the immensely encouraging
Independent Technical Report released in December 2020, which
outlined the potential for a 1.8Moz gold resource. Clearly the
exploration of Ntiela and the delineation of additional resource
ounces to our global gold resource inventory would further enhance
our overall plans to establish a very significant new gold mine
with multiple open pit operations.
"Based on our proprietary knowledge from Garalo, we believe the
true value of Ntiela is yet to be unlocked and accordingly we have
acquired the asset at a highly compelling valuation. With this in
mind, we look forward to providing updates on Garalo and Ntiela, in
addition to our development activities at our first open pit at the
Lubu Coal Project, over the coming weeks."
Summary of the Ntiela Gold Project
The Ntiela Gold Project covers an area of 100km(2) in the
Sikasso region of southern Mali, 200km south-east of the capital
Bamako and close to the Guinea border. The permit, which is
contiguous to the Garalo Gold Project, is surrounded by a number of
multi-million ounce gold deposits and the region is home to some of
the world's leading gold miners, including IAMGOLD, Barrick, B2
Gold, Endeavour Mining and Hummingbird Resources, which has helped
to establish Mali as the third largest gold producer in Africa.
The prospectivity of Ntiela has been established from work
programmes conducted by the previous operator which included soil
and termite mound sampling and geochemistry, regolith mapping and
extensive trenching. This work has been supplemented by drone
surveys conducted by Contango geologists, which have further
supported the potential for the extension of at least two target
zones from Garalo to Ntiela.
The Board intends to launch an exploration programme at Ntiela
following the publication of the maiden NI 43-101 report on Garalo
later this month. Further details regarding the exploration
campaign will be announced in due course.
Terms of Acquisition
Contango will acquire Ntiela for total consideration of
approximately GBP750,000. This includes a cash consideration of
EUR400,000 and the issue of 4,000,000 new Ordinary Shares in
Contango at a price of 10 pence per share. The cash component will
be paid in two instalments during 2021, whilst the shares will be
issued during H2 2021 and will be subject to a 12-month lock
up.
**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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