Canadian firm purchases 15% stake in Zimbabwe’s Blanket gold mine
21st January 2020 - Canadian firm purchases 15% stake in Zimbabwe’s Blanket gold mine
Canadian exploration and development firm, Caledonia Mining has
completed the purchase of Fremiro Investments’ 15% shareholding in the
Blanket gold mine in Zimbabwe.
In November 2018, Caledonia Mining initially signed a binding agreement
to purchase a 15% stake in the gold mine, which came after the two
parties signed a memorandum of understanding (MOU) for the acquisition
of the stake for US$16.66m in August 2019.
The company reached the initial deal to increase its stake after the
Zimbabwe government amended the Zimbabwean Indigenisation and Economic
Empowerment Act in March 2018.
With the completion of the deal, Caledonia Mining will now have a 64%
interest in the Blanket Mine while Fremiro will own 6.3% of
Caledonia’s issued share capital.
Caledonia issued 727,266 of its new shares at an issue price of $7.15 a
Caledonia Mining Chief Executive Officer, Steve Curtis said, “I am
pleased to report that the company has concluded its transaction with
Fremiro to increase Caledonia’s shareholding in Blanket to 64%.
“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.”
In October 2019, Caledonia Mining installed and commissioned an oxygen
plant at the Blanket gold mine.
The company reported a resource upgrade at the mine in September 2018.
According to the update, the total measured and indicated gold ounces at
the mine rose 13% from 714,000oz in August 2017 to 805,000oz as of
The Blanket gold mine produced 54,512oz of gold in 2018. https://polaris.brighterir.com/public/caledonia_mining/news/rns_widget/story/x439eow http://www.caledoniamining.com