Proactive Investors - Run By Investors For Investors

Caledonia agrees legally binding deal to acquire a further 15% of the Blanket mine

Caledonia is increasing its ownership in Blanket, following a change in government rules
Caledonia agrees legally binding deal to acquire a further 15% of the Blanket mine
Caledonia is continuing with plans to boost gold production at Blanket

Caledonia Mining Corporation PLC (LON:CMCL) is to move ahead with the acquisition of a further 15% of the Blanket gold mine in Zimbabwe from local investment group Femiro.

The terms of the deal were first set out in a memorandum of understanding in August.

READ: Caledonia Mining declares quarterly dividend, remains on track for full year payout of US$0.275

In total the transaction is worth US$16.667mln, and includes the cancellation of an US$11.67mln loan and the issue of just over 725,000 shares at a price of US$7.15, the prevailing price at the time the MoU was agreed.

On completion of the transaction, Caledonia will have a 64% shareholding in Blanket and Fremiro will hold 6.42% of Caledonia's diluted equity.

Separately, Caledonia has moved to reassure investors that the ongoing shortage of foreign exchange in Zimbabwe has not impacted operations at Blanket. The company said it is in touch with the highest levels of government in Zimbabwe, and that the matter is receiving urgent attention.

View full CMCL profile View Profile

Caledonia Mining Corporation Timeline

Related Articles

1551268837_Oriole---drilling-in-West-Africa.jpg
February 27 2019
Oriole Resources has a long track-record of exploration in Africa
Underground mine
March 28 2019
This exploration, royalty and property bank and boasts no less than 168 assets
1553516515_Gold-bar-plus-nugget.jpg
March 25 2019
Recent production numbers from Pan African's operations give plenty of grounds for encouragement
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use