Further to the November 25, 2013 announcement in respect of
Caledonia Mining Corporation's ("Caledonia" or the "Company") (TSX:CAL)(OTCQX:CALVF)(AIM:CMCL)
quarterly dividend policy, Caledonia is pleased to announce that the Board of Directors has declared Dividend Number 6, this being a dividend of one and one half Canadian cents ($0.015) on each of the Company's common shares issued and outstanding as of 5:00 p.m. Toronto local time on the Record Date, being October 17, 2014.
The ex-dividend date will be October 16, 2014.
Dividend cheques will be mailed on October 31, 2014.
Shareholders who are registered in the United States of America and the United Kingdom will be paid in US Dollar and Sterling, respectively.
The US Dollar and Sterling dividend payments will be calculated using the relevant Bank of Canada exchange rates at noon on the Record Date and will be after deduction of Canadian withholding tax and any other taxes that may apply.
This dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).
Caledonia's Dividend Policy
Caledonia's long term strategy to maximize shareholder value includes a quarterly dividend policy.
In 2014, the Company paid an annual aggregate dividend of six Canadian cents ($0.060) per common share.
The first quarterly dividend was paid on January 31, 2014 and subsequent quarterly dividends were paid at the end of April and July 2014.
It is currently envisaged that the existing dividend policy of 6 cents per annum, paid in equal quarterly instalments will be maintained in 2015.
Caledonia will continue to maintain its strong financial position so that it can implement its stated growth strategy and retain the flexibility to take advantage of any suitable opportunities that may arise without the need to raise third party finance.
About Caledonia Mining
Caledonia is a mining, exploration and development company focused on Southern Africa.
Following the implementation of indigenisation in Zimbabwe, Caledonia's primary asset is a 49% interest in an operating gold mine in Zimbabwe ("Blanket").
Caledonia's shares are listed in Canada on the Toronto Stock Exchange as "CAL", on London's AIM as "CMCL" and are also traded on the American OTCQX as "CALVF".
Caledonia is debt-free and at June 30, 2014 had cash of $25.8m held with its bankers in the UK, Canada and South Africa.
Blanket mine is a low-cost producer: in the six months ended June 30, 2014, Blanket's on-mine costs were US$638 per ounce of gold produced and its all-in sustaining cost was US$903 per ounce of gold produced.
Cautionary Note Concerning Forward-Looking Information
Information and statements contained in this news release that are --- as a result of new information, future events or other such factors which affect this information, except as required by law. There is no guarantee that Caledonia will maintain the Dividend Policy.
Caledonia Mining Corporation Mark Learmonth +27 11 447 2499 marklearmonth@caledoniamining.com