- Mining company Contango said it had signed a letter of intent with South Mining relating for an offtake agreement for coal produced at the company's Lubu project in Zimbabwe.

South Mining had 'in principle' agreed to purchase an anticipated minimum of 30,000 metric tonnes of raw coal per month from Monaf.

The sale price, remained subject to negotiation, but was estimated at between US$45 and US$55 per metric tonne of raw coal, and between US$70 and US$80 per metric tonne of washed coal.

Contango said it expected to enter into a formal offtake agreement ahead of the anticipated commissioning of Lubu in the fourth quarter of 2020.

At 8:06am: [LON:CGO] Contango Holdings Plc Ord 1p share price was 0p at 4.25p

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