Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources

2 May 2024

Contango Holdings PLC

("Contango" or the "Company")

Operational Update

Contango Holdings Plc, a company focused on the development of the +2 billion tonne Muchesu coal project in Zimbabwe ("Muchesu" or the "Mine"), is pleased to announce that following the capital raise of £940,000 ("Placing") in early April 2024, the Company has now been able to continue operations on site to satisfy requests from potential offtake customers for samples.

Coking and Industrial Coal Operations

Since the Placing, 120 tonnes of product have been mined, screened and washed for two new potential industrial customers in the southern African region.  These potential off takers have arranged to collect the two 60-tonne samples this week. Additional samples had already been sent to other identified potential off takers prior to the Placing.

Collectively ongoing offtake discussions represent demand of more than 50,000 tonnes per month. Whilst the Company does not expect all these discussions to result in a positive outcome, the Company reasonably believes several contracts are likely to materialise from these interested parties during this quarter to June 2024, along with ongoing discussions with respect to coking coal offtake.

Thermal Coal

A further 250 tonnes of thermal coal has now been extracted and will next week be collected by a potential offtake partner, which will subsequently undertake a 'burn test'.  Assuming the results are as expected, the Company believes it will be able to enter into a sizeable long-term thermal offtake contract. 

Corporate Update

In conjunction with these operational developments the Company remains engaged with several groups which have expressed interest in a potential Joint Venture and / or purchase of the mine. The Company continues to supply further information to these parties as part of their ongoing due diligence.

The Company will provide shareholders with updates on both operational and corporate developments as they materialise. Recent operational videos and images following the Placing will shortly be uploaded to the Company's website and social media accounts, in addition to some images included below, as further background for shareholders.

 Coal being screened and then washed:

Screened and Washed Coal Awaiting Collection:

**ENDS**