Shares in Contango Holdings (LSE:CGO) are up 7% after the group confirmed that negotiations with a strategic investor have "progressed to final documentation".
Last month, the group said it was in talks with business person Wencai Huo over the sale of 51% of the Muchesu coal asset in Zimbabwe.
On Tuesday, Contango said: "The company will update the market upon confirmation and entering of final definitive documentation in relation to this transaction."
In late morning trading, the stock, which initially jumped around 14%, was ahead 0.11p at 1.51p.