Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of Contango Holdings PLC (LON: CGO) today surged 28% after the mining company announced that it had bought the Garalo gold project in Mali for $1 million, which is expected to start producing gold in H2 2021.
The firm also revealed that it had raised £1.8 million via a share placement at 5p a share.
Investors did not seem to mind the share placement given today’s rally following the acquisition of the Mali gold project.
Contango recently completed the reverse takeover of the Lubu coalfield project in Zimbabwe in June this year but is yet to provide updates on how close to production the coking coal mine is.
Today’s acquisition will see the company acquire another asset that is also close to production and we are likely to see its shares soar once either of these projects starts production.
Contango share price
Contango shares today surged 29.2% to trade at 6.46p having risen from Friday’s closing price of 5.0p.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 75 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .