London-listed firm sees strategic investor boost stake in Zimbabwe coal project

HARARE – London Stock Exchange listed Contango Holdings Plc has announced that a strategic investor has increased its ownership stake in Monaf Investments, the owner of the Muchesu coal project in Zimbabwe.

According to the company, a firm controlled by a director of Huo Investments acquired a 6.502% stake in Monaf from a local minority shareholder. This purchase does not affect Contango’s interest in Monaf.

Contango Holdings CEO Carl Esprey welcomed the development, stating that it demonstrates the investor’s commitment to the Muchesu project and reinforces its inherent value. The investor has already acquired a 20.42% stake in Monaf and become Contango’s largest shareholder.

“We note the Investor’s purchase of additional shares in Monaf from another minority shareholder and the Investor’s continued investment into the Muchesu Project.

“This should provide shareholders with further confidence of the Investor’s focus on the development of the Muchesu Project and reinforce its inherent value,” Esprey stated.

“The Investor has already made a material investment ‘into the ground’ at Muchesu, acquired a 20.42% holding and become Contango’s largest shareholder.

In addition to this, royalty payments to Contango have commenced. This further increased ownership interest in Monaf and the Muchesu Project bodes well for the Investor’s commitment towards fully developing Muchesu.

“I look forward to updating shareholders on further progress and the completion of outstanding documentation with respect to the Definitive Agreements.”

The Muchesu coal project, valued at over 2 billion tonnes, is a key asset for Contango Holdings. The company is working towards developing the project, with royalty payments already commenced.

The announcement is likely to be seen as a massive development for Contango Holdings, which is listed on the London Stock Exchange under the ticker symbol CGO.