Caledonia Mining Corporation PLC Caledonia increases shareholding in Blanket to 64% (3803A)
21 January 2020 - 6:00PM
UK Regulatory
TIDMCMCL
RNS Number : 3803A
Caledonia Mining Corporation PLC
21 January 2020
Caledonia Mining Corporation Plc
Caledonia increases its shareholding in Blanket Mine to 64 per
cent
(NYSE AMERICAN: CMCL; AIM: CMCL; TSX: CAL)
St Helier, January 21, 2020 - Caledonia Mining Corporation Plc
("Caledonia" or the "Company") is pleased to announce the
completion of the purchase of an additional 15 per cent
shareholding in Blanket Mine (1983) (Private) Limited
("Blanket").
Summary
-- Today's announcement marks the completion of the transaction
first announced on November 6, 2018, following receipt of approvals
from various Zimbabwean regulatory authorities.
-- The purchase of Fremiro's 15 per cent holding means
Caledonia's shareholding in Blanket is now 64 per cent.
-- Gross consideration for Fremiro's shareholding in Blanket is
$16.667 million which has been settled through the cancellation of
a loan between Fremiro and Caledonia and the issue of 727,266 new
shares in Caledonia.
-- Fremiro will now hold approximately 6.3 per cent of
Caledonia's enlarged issued share capital.
On November 6, 2018, Caledonia announced it had entered into a
legally binding agreement with Fremiro Investments (Private)
Limited ("Fremiro") to purchase Fremiro's 15 per cent shareholding
in Blanket. Completion of the purchase required approvals from
various Zimbabwean regulatory authorities, all of which have now
been received. The gross consideration for Fremiro's shareholding
in Blanket is $16.667 million which has been settled through the
cancellation of the loan between Fremiro and the Company which
stood at $11.467 million as at June 30, 2018; and the issue of
727,266 new shares in Caledonia at an issue price of $7.15 per
share, being the closing price on the NYSE American at August 17,
2018. Consequently, Caledonia's shareholding in Blanket is 64 per
cent and Fremiro holds approximately 6.3 per cent of Caledonia's
issued share capital.
Commenting on the transaction, Steve Curtis, Chief Executive
Officer, said:
"I am pleased to report that the Company has concluded its
transaction with Fremiro to increase Caledonia's shareholding in
Blanket to 64 per cent. I would like to thank Fremiro for its
support as a shareholder in Blanket during the last seven years and
am confident that Fremiro, now as a significant shareholder in the
Company, will continue to be supportive of Caledonia's business
going forward."
Background
Fremiro acquired its shareholding in Blanket when Caledonia
implemented transactions in 2012 to comply with the Zimbabwean
Indigenisation and Economic Empowerment Act (the "Act"). As part of
the transactions, Caledonia sold 41 per cent of Blanket to the
following indigenous Zimbabwean shareholders:
-- Fremiro:15 per cent
-- The National Indigenisation and Economic Empowerment Fund: 16 per cent
-- Blanket Employee Trust Services (Private) Limited: 10 per cent
The financing of these acquisitions was facilitated through
approximately $30 million of facilitation loans to the above
parties apportioned pro rata between the parties based on
shareholding.
In addition, 10 per cent of Blanket was donated to the local
community in the form of the Gwanda Community Share Ownership
Trust.
In March 2018 the Act was amended to remove the 51 per cent
indigenisation requirement for gold mining businesses; shortly
thereafter, Caledonia and Fremiro agreed a transaction whereby
Caledonia would purchase Fremiro's shareholding in Blanket.
Per the Company's announcement of November 6, 2018, Caledonia is
issuing 727,266 common shares to Fremiro under the terms of the
transaction. Application has been made by Caledonia for these
shares to be admitted in the form of depositary interests to
trading on AIM and it is anticipated that trading in such
securities will commence at 8am on or around January 24, 2020
("Admission"). Upon Admission, Caledonia's issued share capital
will be 11,515,860 common shares. There are no shares held in
treasury. The total voting rights in the Company upon Admission are
therefore 11,515,860 and this figure may be used by shareholders
and depositary interest holders as the denominator for the
calculations by which they determine if they are required to notify
their interest in, or a change to their interest in, the
Company.
For further information please contact:
Caledonia Mining Corporation Plc
Mark Learmonth Tel: +44 1534 679 800
Maurice Mason Tel: +44 759 078 1139
WH Ireland (Nomad & Broker)
Adrian Hadden/James Sinclair-Ford Tel: +44 20 7220 1751
Blytheweigh
Tim Blythe/Camilla Horsfall/Megan Tel: +44 207 138 3204
Ray
3PPB
Patrick Chidley Tel: +1 917 991 7701
Paul Durham Tel: +1 203 940 2538
The information contained within this announcement is deemed by
the Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDBMMPTMTMTBIM
(END) Dow Jones Newswires
January 21, 2020 02:00 ET (07:00 GMT)
Caledonia Mining (LSE:CMCL)
Historical Stock Chart
From Apr 2024 to May 2024
Caledonia Mining (LSE:CMCL)
Historical Stock Chart
From May 2023 to May 2024