Caledonia Mining Corporation (CMCL)

[mortalmyth]

canadapetro, the special meeting is tomorrow to vote on both the proposed dividend and the reverse split. Most are assuming there are enough votes to approve both of these measures. The schedule for implementation of the R/S is currently TBD and the schedule for the dividend is outlined below.

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January 24th 2013 Special Meeting
January 25th 2013 Caledonia Board to declare dividend
February 8th 2013 Proposed dividend record date
February 22nd 2013 Proposed dividend payment date

The Toronto Stock Exchange will determine on a date closer to the meeting date when Caledonia’s shares will commence trading "ex dividend". That date will be publicly announced.
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Also, as was posted previously, Caledonia is Proposing the R/S on a Position of Strength.

From the latest investor presentation from Caledonia, page 24 highlights the following:

* Proposed 1:10 Reverse Split
– Subject to shareholder approval

* R/S proposed from a position of strength
– Significant cash on hand
– Highly cash-generative generative operations
– Consistently strong operational performance at Blanket
– Good growth prospects at Blanket, all internally funded – new equity not required to implement growth
– Proposed initial dividend on an attractive yield

* 507M shares in issue and “Penny share” status is unattractive for many investors

* Shareholder meeting to approve the Reverse Split will be held on January 24th 2013

Proposed R/S is a strategic decision reflecting Caledonia’s emergence as a self-sustaining miner


http://www.caledoniamining.com/pdfs/CALPres-01142013.pdf
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Note: Caledonia is not like so many other junior miners where they have to continue to issues new shares, almost daily, and need reverse splits in order for their business to survive. It certainly isn’t like other companies who have gone from hundreds of millions of shares to billions of shares to pay their bills and just stay in business, and are now in the process of authorizing and implementing reverse splits. These are illustrative of having a reverse split in weakness, and typically results in a company’s share price collapsing afterwards as subsequent dilution continues.

Bottom line: Caledonia now feels it’s in a good position and time to lose the “penny stock” label status. This action is now resulting in more interest in Caledonia shares by hedge funds and institutional investors as is shown over the last two weeks with the increased trading volumes and share price. Having a R/S at this time will also get the company one step closer to moving to a higher and better trading exchange in the future.


Good day to you.