Contango Holdings PLC MOU for Zimbabwean Acquisition and Suspension (1497A)
22 December 2017 - 6:30PM
UK Regulatory
TIDMCGO
RNS Number : 1497A
Contango Holdings PLC
22 December 2017
22 December 2017
Contango Holdings plc ('Contango', the 'Company')
MEMORANDUM OF UNDERSTANDING SIGNED FOR ACQUISITION OF MINING
PROJECT IN ZIMBABWE
SUSPENSION OF LISTING IN THE COMPANY'S SHARES
The Directors of the Company are pleased to announce they have
signed a Memorandum of Understanding and entered into an
exclusivity period with regards to the possible acquisition of
Consolidated Growth Holdings Limited's interest in a near-term
producing mining asset in Zimbabwe ('Proposed Acquisition'). The
Proposed Acquisition is conditional on the completion of legal due
diligence and re--admission of the enlarged entity on the Main
Market.
The headline terms of the MOU propose for a transaction to take
place at 5 pence per share, representing a 33% premium to the
mid-market share price of Contango at time of suspension.
The Proposed Acquisition, if completed, would constitute a
reverse takeover under the Listing Rules. As the Company is
currently unable to provide a full disclosure under Listing Rule
5.6.15, it has requested a suspension of listing in its shares with
immediate effect.
Both companies have now engaged advisors to rapidly progress the
requisite due diligence and documentation to complete a reverse
takeover transaction. It is anticipated that the newly enlarged
entity will be admitted to trading on the Main Market around the
end of Q1 2018, subject to UK Listing Authority approval.
Whilst the board is resolute in its efforts to execute the
Proposed Acquisition, no binding agreement has yet been reached and
accordingly, the Board cannot at this stage guarantee its
completion. Further announcements will be made in due course.
Brian McMaster, Chairman of Contango Holdings, commented: "We
are delighted to have entered into our first MOU within two months
of listing in London. In that time, we have reviewed numerous
projects and believe the Proposed Acquisition meets our stated
objective of identifying a low CAPEX and OPEX project with near
term production. Zimbabwe is an area which the Board is familiar
with and believe successful completion of the targeted transaction
should position Contango well for subsequent expansion in country,
particularly in light of the increasingly favourable political
climate."
* ENDS *
For further information, please visit
www.contango-holdings-plc.co.uk or contact:
Contango Holdings plc E: info@contango-holdings-plc.co.uk
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 / Priit Piip
This information is provided by RNS
The company news service from the London Stock Exchange
END
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