Contango buoyed by new royalty business model

Under the agreement, Contango is guaranteed a minimum royalty payment of US$2 million annually from Huo, with additional payments tied to coal production.

CONTANGO Holdings operating a two billion tonne Muchesu coal project in Binga is optimistic that the transition to a cash-generative royalty company will support its growth.The London headquartered firm partnered investor- Huo Investments to drive significant progress at the Muchesu Mine.“We are well positioned to transition from being a mining operation to a profitable royalty…

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