REG - Contango HoldingsPLC - Initial US$1M Royalty Payment Received

Contango HoldingsAnnouncement

12/06/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250612:nRSL4817Ma&default-theme=true

RNS Number : 4817M  Contango Holdings PLC  12 June 2025

Contango Holdings Plc / Index: LSE / Epic: CGO / Sector: Natural Resources

 

12 June 2025

 

Contango Holdings PLC

("Contango" or the "Company")

 

Initial US$1M Royalty Payment Received

 

Contango Holdings Plc, a company focused on unlocking value from the +2
billion tonne Muchesu coal project in Zimbabwe ("Muchesu"), is pleased to
advise since February 2025 it has received further royalty payments totalling
US$500,000. This now brings the total royalty receipts to date under the
previously reported Mineral Royalty Agreement ("MRA") with Huo Investments
(Pvt) Limited (the "Investor") to US$1,000,000.

 

Under the MRA, the Investor is obligated to pay minimum royalties of
US$2,000,000 per annum, although the Company expects the ultimate royalty
receipts to be considerably higher. The Company and the Investor are currently
finalising the payments schedule of the second US$1,000,000 payment.

 

Carl Esprey, CEO Of Contango, commented:

 

"We have now received US$1,000,000 in royalty payments under the MRA. These
royalty payments strengthen the Company's capital position and reaffirm the
Investor's commitment to Muchesu.

 

"Work and capital investment has continued at Muchesu since our last update,
including the commencement of installation of coke batteries. An additional
RNS will be made addressing operational activities. It is however highly
encouraging to report continued investment and expenditure at site by the
Investor, who remains the Company's largest shareholder (20.42%)."

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) No. 596/2014, as it forms part of UK Domestic
Law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

 

 

**ENDS**

 

 Contango Holdings plc                   E: contango@stbridespartners.co.uk

 Chief Executive Officer

 Carl Esprey

 Tavira Financial Limited                T: +44 (0)20 7100 5100

 Financial Adviser & Broker

 Jonathan Evans

 St Brides Partners Ltd                  T: +44 (0)20 7236 1177

 Financial PR & Investor Relations

 Susie Geliher

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGPUACQUPAGMG