Confirmation of Registration and Receipt of US$1M
Contango Holdings PLC has confirmed the registration of Pacific Goal Investments Private Limited (PGI) as the 51% owner and operator of the Muchesu coal project, with Contango retaining a 24% stake in Monaf Investments. The company has also received US$1,000,000 from PGI, representing the first payment since PGI became the proposed operator and 51% owner. The Mineral Royalty Agreement remains in effect, guaranteeing Contango a minimum annual payment of US$2,000,000.
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Contango Holdings Plc, a company focused on unlocking value from the +2 billion tonne Muchesu coal project in Zimbabwe ("Muchesu" or the "Project"), is pleased to advise the completion of registration with the Reserve Bank of Zimbabwe for the transfer of 51% ownership of Monaf Investments (Private) Limited ("Monaf") from Contango to Pacific Goal Investments Private Limited ("PGI"). PGI have also now been registered as operator of the Project.
The revised ownership of Monaf, the 100% owner of Muchesu, is now as follows:
| Shareholder | Holding |
|---|---|
| PGI | 51.0% |
| Contango | 24.0% |
| Lilyone Investments | 6.5% |
| Local Minority Shareholders | 18.5% |
As previously reported, PGI forms part of the Pacific Goal Group, a Hong Kong based industrial group with extensive mining and energy operations in Zimbabwe, including a major mine-to-energy industrial park, incorporating two power stations, a graphite processing plant and a nickel smelter. PGI is co-owned by Mr Wencai Huo, the Company's 20.42% shareholder, and Mr Liu Jun.
The Mineral Royalty Agreement ("MRA") payable by Monaf to Contango remains in effect for the life of mine and includes a US$2 per tonne on thermal coal, US$4 per tonne on industrial coal and US$8 per tonne on coking coal production. A provision within the MRA also ensures a minimum payment to the Company of US$2,000,000 per annum.
For further background on the variation please refer to RNS No 3870E dated 22 October 2025 "Variation to Strategic Partnership for Muchesu".
Receipt of US$1,000,000
The Company is also pleased to confirm that it has received US$1,000,000 from PGI, marking the first payment received from PGI since it replaced Huo Investments last quarter as the proposed operator, 51% owner of Muchesu and provider of the US$20 million loan facility to the Muchesu project.
Commenting, Daniel Dos Santos, CEO of Contango, said:
"I am pleased to confirm the registration of PGI as a 51% shareholder in Monaf and operator of the Project. In addition, we have also received US$1,000,000 as settlement of the outstanding liability from PGI as part of the variation of terms.
The Company will provide a separate operational update shortly."
596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018.
Contango Holdings plc
Daniel Dos Santos - Chief Executive Officer
Tavira Financial Limited - Financial Adviser & Broker
Jonathan Evans
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.