LONDON: Contango Holdings Plc, a company committed to maximizing the value of the +2 billion tonne Muchesu coal project in Zimbabwe, announced that an entity controlled by a director of Huo Investments (Pvt) Limited has acquired a 6.502% stake in Monaf Investments (Private) Limited from a local minority shareholder.
This transaction does not affect Contango’s interest in Monaf.
Contango’s shareholders were previously informed that the Investor has agreed to purchase a 51% holding in Monaf, contingent upon the completion of local regulatory processes.
Carl Esprey, CEO of Contango, commented, “We acknowledge the Investor’s additional share acquisition in Monaf and their ongoing investment in the Muchesu Project. This demonstrates the Investor’s commitment to the development of the project and reinforces its inherent value.”
Esprey highlighted the Investor’s substantial investment in the Muchesu Project, including acquiring a 20.42% stake and becoming Contango’s largest shareholder, with royalty payments to Contango already underway. “This further increased ownership interest in Monaf and the Muchesu Project bodes well for the Investor’s commitment towards fully developing Muchesu,” he added.
Contango looks forward to updating shareholders on further progress and the completion of the outstanding documentation related to the Definitive Agreements.