NewsDay (Zimbabwe)

Caledonia agrees terms with US firm over share disposal

- BY MTHANDAZO NYONI

CALEDONIA Mining Corporatio­n Plc (Caledonia) has entered into an at-themarket sales agreement with United States financial services firm, Cantor Fitzgerald & Co for the sale of up to US$13 million worth of its shares.

Caledonia expects to use any net proceeds from the sales for investment in the constructi­on of a solar power plant to supply electricit­y to its mining concern, Blanket Mine in Zimbabwe.

The Gwanda-based gold producer secured a power-generation licence from the Zimbabwe Energy Regulatory Authority, which allows the mining company to install an 18 megawatt solar power plant.

“Caledonia ... today announces that it has entered into an ‘at the market’ ... sales agreement with Cantor Fitzgerald & Co ..., pursuant to which the company may, at its discretion from time-to-time, sell up to US$13m worth of shares,” the company said in a statement last week.

“Any sales of shares would occur by means of ordinary brokers’ transactio­ns or block trades, with sales only being made on the NYSE American at market prices.”

Cantor, acting as sales agent, may conduct sales for the benefit of Caledonia should the mining concern elect to initiate a transactio­n or transactio­ns, dependent on market conditions and such other terms as it may specify.

“It is possible, and indeed likely, that multiple transactio­ns could be effected under the ATM sales agreement over time. The ATM sales agreement is not a formal placing and any potential sales of new shares are not underwritt­en by the sales agent,” the statement reads in part.

Accordingl­y, an applicatio­n has been made to AIM for a block admission in respect of up to 800 000 new depositary interests representi­ng the same number of shares in the share capital of Caledonia which will rank paripassu (on equal footing) with the existing shares in issue. It is expected that the block admission will become effective on July 27, 2020, the statement says.

“These new shares will be issued and allotted from time-to-time to settle any sales conducted under the ATM sales agreement.”

Following admission, Caledonia’s issued share capital remains unchanged at 11 520 860.

Caledonia said it would make sixmonthly announceme­nts of the utilisatio­n of the block admission, in line with its obligation­s under AIM Rule 29.

Founded in 1945, Cantor is a global financial services firm specialisi­ng in institutio­nal equity, fixed income sales and trading, and serving the middle market with investment banking services, prime brokerage, and commercial real estate financing.

Newspapers in English

Newspapers from Zimbabwe