Contango gets first royalty payment

Contango Holdings Plc says it has received its first royalty payment of US$200 000 from its Muchesu coal project in Zimbabwe.
This payment is part of a Mineral Royalty Agreement (MRA) with Huo Investments (Pvt) Limited, which is set to bring the total royalty receipts to US$1,000,000 by the end of this month, with an additional US$800,000 expected shortly.
“The receipt of our first royalty payment not only underscores the confidence our partners have in the project’s potential but also reinforces our commitment to delivering consistent value for our shareholders,” Contango chief executive Carl Esprey said in a statement.
Under the terms of the MRA, Contango Holdings is guaranteed a minimum of US$2,000,000 per annum, with potential additional payments linked to the volume of coal produced.