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LONDON - Contango Holdings PLC announced Wednesday it has modified its strategic partnership arrangement for the Muchesu coal project in Zimbabwe, with Pacific Goal Investments Private Limited (PGI) replacing Huo Investments as the majority stakeholder at the asset level.
According to the press release, PGI will now acquire the 51% equity interest in Muchesu that was originally intended for Huo Investments. PGI is jointly owned by Wencai Huo, the principal of Huo Investments, and Liu Jun.
The revised ownership structure of Monaf Investments, the subsidiary holding Muchesu, now stands at 51% for PGI, 24% for Contango, 6.5% for Lilyone Investments (owned by Wencai Huo), and 18.5% for local minority shareholders.
PGI, part of Hong Kong-based Pacific Goal Group, will also assume responsibility as lender under the previously established $20 million revolving facility agreement. Funds already advanced by Huo Investments will be recognized and assumed by PGI.
The company stated that Huo Investments retains its 20.42% shareholding in Contango, which it acquired through a subscription completed in Q1 2025. The mineral royalty agreement remains unchanged, with Contango entitled to receive $2 per tonne for thermal coal, $4 per tonne for industrial coal, and $8 per tonne for coking coal, with a minimum annual royalty of $2 million.
Contango reported that $1 million in royalty payments was received during H1 2025, with another $1 million scheduled for payment this quarter.
The Muchesu project, described as having over 2 billion tonnes of coal resources, has seen recent developments including mining footprint expansion, installation of a Dense Media Separation plant, infrastructure works, and installation of coke batteries, funded through the revolving facility.
The information was provided in a company press release statement.
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