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Contango HoldingsPLC (CGO)

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Thursday 22 October, 2020

Contango HoldingsPLC

Directors' Dealings & Holdings in Company

RNS Number : 8437C
Contango Holdings PLC
22 October 2020
 

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

 

22 October 2020

Contango Holdings Plc

('Contango' or the 'Company')

 

Directors' Dealings & Holdings in Company

 

Overview

 

· RAB Capital purchases 12.54% of total issued share capital

· Carl Esprey, CEO of Contango, acquires 1.75% of total issued share capital

 

Contango Holdings Plc, the London listed natural resource company developing the Garalo Gold Mine in Mali and the Lubu Metallurgical Coal Project in Zimbabwe, can today advise on two significant share acquisitions.

 

Specialist mining investor RAB Capital has today increased its holding to a total 30,040,699 ordinary shares in the Company, representing 12.54% of the current issued share capital. This was achieved via the purchase of 5,940,669 ordinary shares previously held by Philip Richards, a Director of the Company, the previously disclosed subscription of 7,000,000 ordinary shares in the recent Placing (which were admitted to trading today), the acquisition of 15,000,000 shares from Consolidated Growth Holdings ('CGH') as well as a further share purchase of 2,100,000 shares. Philip Richards is the founder and the controlling 64.9% shareholder of RAB Capital and these transactions have consolidated his holding into one entity.

 

In addition, Carl Esprey, Chief Executive Officer of Contango, has acquired 4,000,000 shares in the Company, also from CGH, bringing his current holding to 4,200,000, representing 1.75% of the current issued share capital of the Company .

 

To facilitate the material increase in holdings by RAB Capital and the share acquisition by Company CEO Carl Esprey, the Company and Brandon Hill Capital exercised its right to waive the current lock-in agreement with CGH that was entered into during the IPO in June 2020. The waiver of the lock-up is only applicable to the disposal of the combined 19,000,000 shares to RAB Capital and Carl Esprey. CGH's revised holding of 109,849,961 ordinary shares, representing 45.84% of the current issued share capital will remain under the lock-up agreement until June 2021.

 

As Philip Richards and Carl Esprey are directors of the Company, the acquisition by RAB Capital and Carl Esprey from CGH is deemed a related party transaction as defined under DTR 7.3. The independent director Roy Pitchford (Non-Executive Chairman) considers the terms of the transactions fair and reasonable insofar as the Company's shareholders are concerned.

 

Philip Richards commented, "I am very pleased that RAB Capital has now become a substantial shareholder in Contango. We expect both of its assets to be generating cashflow within a year or so, and thereafter we expect a significant and growing dividend yield in line with the company policy of paying out around 50% of net profit in dividend."

 

Andrew Groves, CEO of CGH commented: "We remain very supportive and pleased with the progress Contango have made in 2020. We have agreed to dispose of a small portion of our holding given the underlying buyers. We remain a substantial shareholder with 45.84% and look to the future of Contango with great optimism."

 

Carl Esprey, CEO of Contango, commented: "Having successfully completed an oversubscribed capital raise to fund our projects into production, these are very exciting times for Contango. I see significant upside from the current share price levels and am happy to have now built a more meaningful direct shareholding in the Company following my appointment earlier this year."

 

**ENDS**

 

For further information, please visit www.contango-holdings-plc.co.uk or contact:

 

Contango Holdings plc

Chief Executive Officer

Carl Esprey

E: [email protected]

 

 

Brandon Hill Capital Limited

Financial Adviser & Broker

Jonathan Evans

T: +44 (0)20 3463 5000

 

 

St Brides Partners Ltd

Financial PR & Investor Relations

Susie Geliher / Cosima Akerman

T: +44 (0)20 7236 1177

 

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