Contango Holdings has reshuffled its partnership structure at the Muchesu Coal Project in Hwange, introducing Pacific Goal Group (PGG) as a new strategic investor and financier.
In an update this week, Contango said the funding and operational responsibilities would now be assumed by Pacific Goal Investments (PGI), part of the broader Hong Kong-based Pacific Goal Group — a Zimbabwe-focused investment vehicle with significant existing assets in mining, power, and logistics.
“These variations strengthen the partnership structure at Muchesu and introduce PGI as a committed strategic investor with an established operational footprint in Zimbabwe,” said Contango CEO Daniel Dos Santos.
“Their industrial investments in power, logistics, and processing are highly complementary to the long-term development of Muchesu. At the same time, Huo Investments remains supportive through its shareholding and previous contributions to the project.”
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The move follows adjustments to an earlier agreement with Huo Investments, which holds 20.42 % of Contango. Huo had initially pledged to acquire a 51 % equity interest in Muchesu and provide a US $20 million revolving facility to fund mine expansion and the installation of key infrastructure.
PGG counts Wencai Huo, principal of Huo Investments, among its shareholders and already operates a mine-to-energy industrial park in Zimbabwe, a fleet of more than 200 trucks, and other energy-linked ventures.
Contango said field activity at Muchesu continues to gather momentum, with a further operational update expected soon.
Shares in Contango were up 14.1 % to 0.8 pence on Wednesday following the announcement.
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