REG - Contango HoldingsPLC - Receipt of Additional Royalty Payment

Contango HoldingsAnnouncement

13/02/2025 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:20250213:nRSM9269Wa&default-theme=true

RNS Number : 9269W  Contango Holdings PLC  13 February 2025

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

 

13 February 2025

 

Contango Holdings PLC

("Contango" or the "Company")

 

Receipt of Additional Royalty Payment

 

Contango Holdings Plc, a company focused on unlocking value from the +2
billion tonne Muchesu coal project in Zimbabwe ("Muchesu"), is pleased to
confirm it has now received a further royalty payment of US$300,000. This
brings the total royalty receipts to date under the previously reported
Mineral Royalty Agreement ("MRA") with Huo Investments (Pvt) Limited (the
"Investor") to US$500,000. The balancing US$500,000 payment under the
previously reported US$1,000,000 is expected to be made later this month.

 

As previously reported, the Company is entering into a series of agreements
with the Investor, including the MRA, a Revolving Facility Agreement of
US$20,000,000 ("RFA"), as well as entering into a change of ownership of Monaf
Investments (Private) Limited, the subsidiary that holds the Muchesu Project
(collectively the "Definitive Agreements"). The Company is targeting signing
the final Definitive Agreements in the current quarter, although as previously
noted the Investor commenced material investment under the RFA during the
second half of 2024 (see RNS of 31 October and 29 November 2024) and has also
commenced payments under the MRA.

 

In addition, following the publication of a Short Form Prospectus ("SFP") in
January 2025, the Company has completed the previously reported US$2,000,000
Subscription with the Investor, who is now the largest shareholder of the
Company with an interest of 20.42%.

 

Carl Esprey, CEO Of Contango, commented:

 

"This additional royalty payment from the Investor under the proposed MRA
further strengthens the Company's capital position and continues the highly
collaborative relationship. Following the end of the Chinese New Year
celebrations and return of key personnel to Zimbabwe we look forward to
finalising the remaining outstanding documentation for the Definitive
Agreements and bringing the broader transaction to a successful conclusion."

 

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  UPDGPUCCPUPAPUP