- Trading in Contango Holdings' shares has been suspended at the company's request after it signed a memorandum of understanding and entered into an exclusivity period for the possible of Consolidated Growth Holdings Limited's interest in a near-term producing mining asset in Zimbabwe.

The proposed acquisition is conditional on the completion of legal due diligence and reā€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.

Both companies have engaged advisers to progress rapidly 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.

Chairman Brian McMaster said: '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.'

At 8:22am: [LON:CGO] Contango Holdings Plc Ord 1p share price was 0p at 3.75p

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