Shares of Contango Holdings (LSE:CGO) PLC surged by 8% after it revealed it had received a proposal to acquire unnamed "subsidiary-level assets".
While the approach is in its early stages, the board is actively consulting with advisers to maximise stakeholder value.
On the operational front, the natural resources group confirmed the completion of construction for the production and washing of Muchesu coal, along with export approvals from Zimbabwe's Minerals Marketing Corporation.
It also told investors it secured £1 million in unsecured loans for working capital, as it awaits further sales under existing and potential new offtake agreements.
At 8.29 am, the stock was changing hands for 4.55p, up 0.35p.