Caledonia closes Zim Placing

CMining Corporation has announced the closure of the Zimbabwe Placing that received strong support from new and existing institutional investors raising an estimated US$ 5,825 million before expenses.

The fundraise, which is also part of a similar initiative conducted in the United Kingdom and South Africa last month through an accelerated book-building process, brings the total capital raised to US$ 16,566 million before expenses.

It is hoped that the net proceeds from the initiative together with the mining group’s existing cash reserves and the future cash to be generated internally would strengthen Caledonia’s balance sheet.

The fundraise will also support the giant global investor with working capital flexibility to accelerate planned work at the firm’s three new gold projects presently being developed in Zimbabwe.

Caledonia, which is angling to be a multi-asset gold producer in Zimbabwe, last year announced the acquisition of Bilboes Gold Limited in Bubi District, Matabeleland North province under a US$ 53,5 million.

The mining group, which owns the gold-rich Blanket Mine in Gwanda, Matabeleland South province in 2021, bought the Maligreen Goldfields in Gweru, Midlands province for about US$ 4 million and the Motapa gold exploration project contiguous to the Bilboes gold operation.

In a statement this week, the Victoria Falls Stock Exchange-listed mining group said: “Caledonia is pleased to announce that, further to the announcements made on March 24, 2023 and March 31, 2023, the Zimbabwe Placing has now closed and has raised approximately US$ 5,825 million before expenses.

“The Zimbabwe Placing received strong support from new and existing institutional investors. A total of 423,951 ZDRs have been placed at the Placing Price of US$ 13,74 each.”

Meanwhile, the mining group said further to the announcement it made on January 6, this year relating to the acquisition of Bilboes Gold Limited, Caledonia has instructed the issue of a further 256,152 shares (Deferred shares).

“As a reminder, under the Transaction, 5 percent of the total consideration shares, being the Deferred Shares, were retained by Caledonia in order that adjustments to the purchase price could be calculated after completion to account for any extraordinary liabilities incurred,” it said.

Last year, Blanket Mine produced a record production of 80 775 ounces of the yellow metal exceeding the top end of the operation’s guidance.

The above output figure saw the group achieving its long-standing production target.

Last year’s production represents a 19,7 percent increase on the 67 476 ounces produced in 2021.