Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources
26 March 2021
Contango Holdings Plc
('Contango' or the 'Company')
Offtake Discussions - Lubu Coking Coal Project
Contango, the
Given the Lubu Coking Coal Project's proximity to Hwange, the Company and the Potential Offtake Partner have entered into discussions with the view to Contango supplying the coking coal for the coke batteries on a long-term offtake.
Given the positive progress made thus far and the potential significance of an agreement with the Potential Offtake Partner, the Company has elected to cease mining operations at Lubu until these discussions have progressed, which is expected to be in April 2021, thereby ensuring any potential development is optimised and the Company's resources are deployed appropriately.
Both parties are looking to advance discussions further and additional meetings and a site visit have been scheduled for mid-April 2021. The Company intends to open a trial pit and a bulk sample will be sent to the Potential Offtake Partner so that it can conduct a burn test.
Carl Esprey, Chief Executive Officer of Contango Holdings, said: "The Potential Offtake Partner, together with its global conglomerate parent company, are investing heavily in
"As shareholders will be aware, coking coal is a critical component of steel manufacturing and the synergies between Contango and the Potential Offtake Partner are evident. We look forward to advancing these discussions next month and will update the market accordingly."
**ENDS**
For further information, please visit www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc Chief Executive Officer Carl Esprey |
E: info@contango-holdings-plc.co.uk |
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Brandon Hill Capital Limited Financial Adviser & Broker Jonathan Evans |
T: +44 (0)20 3463 5000 |
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St Brides Partners Ltd Financial PR & Investor Relations Susie Geliher / Cosima Akerman |
T: +44 (0)20 7236 1177 |