London-listed Contango Holdings is moving to raise £5 million through a strategic share subscription designed to recapitalise the business, eliminate debt, and reinforce its financial position as operations at the Muchesu Coal Project continue to strengthen, Mining Zimbabwe can report.
By Ryan Chigoche
The proposed capital will be provided by Pacific Goal Investments (PGI) and Huo Investments, which plan to subscribe for a combined 450,450,451 new ordinary shares.
PGI is jointly owned by Wencai Huo and Liu Jun, long-term strategic partners focused on unlocking value from Zimbabwe’s mineral resources.
The investment is expected to fully repay shareholder loans, leaving the company debt-free and better positioned to begin paying dividends as royalty income from Muchesu grows.
Priced at a 39 percent premium to the February 12, 2026, mid-market close, the transaction signals strong investor confidence in both the project and the company’s future prospects.
Following completion, PGI is expected to hold about 29.7 percent of the enlarged share capital, while Huo Investments will control roughly 20.4 percent, giving the two strategic investors a combined stake of close to 50 percent.
Commenting on the development, Chief Executive Danny dos Santos said the transaction marks a turning point as the Muchesu operation continues to mature.
“I am delighted to announce this conditional subscription at a healthy premium to current trading levels, which will recapitalise the company and enable us to repay all existing shareholder loans. This will leave the company debt-free and now in a position to pay dividends to shareholders as royalty income grows at Muchesu.”
Situated in Binga, the Muchesu project hosts an estimated 1.3 to 2 billion tonnes of coal resources and has increasingly become central to Zimbabwe’s energy and industrial ambitions.
Since its commissioning in August 2023, the project has supported the export of high-grade coking coal, attracted foreign investment, and positioned itself as a potential contributor to domestic power generation.
Its broader economic impact is expected to extend across Matabeleland North through employment creation, infrastructure development, and the stimulation of downstream industries such as power generation and mineral processing.
The restructuring of the asset advanced further in January when PGI was formally registered as the project operator following approval by the Reserve Bank of Zimbabwe.
The development highlights coal’s growing strategic role in Zimbabwe’s mining-to-energy value chain, as large-scale production in the province is expected to strengthen energy security, reduce reliance on imported electricity, and supply feedstock for thermal power and coal-to-energy projects.
