Caledonia Announces the Adoption of a Shareholder Rights Plan - Monday April 14, 9:00 am ET
TORONTO, ONTARIO--(MARKET WIRE)--Apr 14, 2008 -- Caledonia Mining Corporation ("Caledonia") (Toronto:CAL.TO - News)(OTC BB:CALVF.OB - News)(AIM: CMCL) today announced that its Board of Directors has adopted a Shareholder Rights Plan (the "Rights Plan") effective immediately.
The Rights Plan is subject to the approval of the Toronto Stock Exchange and must be ratified by shareholders at the Special and Annual General Meeting to be held on May 16, 2008, failing which it will cease to have effect. Subsequent to ratification by Caledonia shareholders, the Rights Plan will thereafter be in effect for an initial term of three years and is subject to reconfirmation by shareholders at the third annual meeting held after each confirmation.
"The adoption of a Rights Plan is intended to help protect our shareholders and is designed to ensure that they will receive fair and equal treatment in the event of any take-over bid" stated Caledonia's President, Stefan Hayden. Caledonia is not aware of any specific take-over bid for the Corporation in process or currently being contemplated.
The Rights Plan is designed both to encourage the fair and equal treatment of Caledonia's shareholders in connection with any potential take-over bid and to ensure that Caledonia's shareholders and its Board of Directors, in compliance with securities laws, have sufficient time to consider whether there are other options that would more effectively maximize shareholder value. The Rights Plan cannot be utilized to deny shareholders the opportunity to tender into any tender offer and is not designed to entrench management or Caledonia's Board. The terms of the Rights Plan are similar to those in rights plans recently approved by shareholders of other Canadian corporations.
The Rights issued under the Rights Plan become exercisable when a person, together with any parties related to it, acquires or announces its intention to acquire, 20% or more of the Corporation's outstanding common shares without complying with the "Permitted Bid" provisions of the Rights Plan or without approval of Caledonia's Board of Directors. Should such an acquisition occur each Right would entitle a holder, other than the acquiring person or persons related to it, to purchase common shares of Caledonia at a significant discount to the then current market price. A "Permitted Bid" is a bid made to all Caledonia shareholders that is open for at least 60 days. If at the end of the 60 day period more than 50% of Caledonia's then outstanding common shares, other than those common shares owned by the party making the bid and certain related persons, have been tendered to the bid, such party may take up and pay for the common shares but must extend the bid for a further 10 business days to allow other shareholders to tender.
The Rights issued under the Rights Plan will initially attach to and trade with Caledonia's common shares and no separate certificates will be issued unless an event triggering these Rights occurs. A copy of the Rights Plan will be filed on SEDAR (www.sedar.com).
Further information regarding Caledonia's exploration activities and operations along with its latest financials may be found at www.caledoniamining.com.
Certain statements included herein are "forward-looking statements". Management cautions that forward-looking statements are not guarantees and that actual result could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause the actual results of operations, exploration or development programs, or the financial condition of the Company, to differ include, but are not necessarily limited to, the risks and uncertainties discussed in documents filed by the Company with the various regulatory authorities having jurisdiction.
Contact:
Contacts: Caledonia Mining Corporation Stefan Hayden President & CEO +27 11 447 2499
Gold production at the Blanket Mine in Zimbabwe was re-started during April 2009 and the 766 ounces of fine gold produced during that month was exported and delivered to Rand Refineries in South Africa. This gold has subsequently been sold at the ruling international price and 100% of the proceeds have been transferred to Blanket Mine :-) by Rand Refineries.
Caledonia Installing a Standby Generator at Blanket Gold Mine
Caledonia Mining Corporation - On Thursday May 6, 2010, TORONTO, ONTARIO--(Marketwire - 05/06/10) -
Caledonia Mining Corporation ("Caledonia") (TSX:CAL - News)(OTC.BB:CALVF - News)(AIM: CMCL) has taken immediate steps to address the significant worsening in recent weeks of the electricity supply to its Blanket Gold Mine. Accordingly, it has ordered the first of several planned 2.5MVA diesel generators. This first set is planned to be installed and commissioned in early June 2010.
Blanket Gold Mine currently relies exclusively on a Zimbabwe Electricity Supply Authority 33kV electricity supply to run all of its operations. In recent weeks, the continuity of electricity supplies has deteriorated significantly: average daily power outages at Blanket have increased from approximately 5 hours per day in February 2010 to over 9 hours per day in May. The increased frequency, coupled with the unpredictabilty and duration of power outages has an adverse effect on gold production, and also on the underground installations essential for the completion of the No. 4 Shaft Expansion Project.
In light of the rapid deterioration in electricity supply, Caledonia has decided to accelerate Blanket's program to install sufficient diesel generating capacity to allow mining operations to continue at the current rate of production during electricity outages. The first standby generator will allow the continuous operation of the Four Shaft Winders to operate on production and the installation works necessary to complete the No. 4 Shaft Expansion without interruption during outages.
Blanket plans to install additional generators after completion of the No. 4 Project. These additional generators will give Blanket sufficient standby generating capacity to maintain its target production of 40,000 ounces of gold per annum even if the current level of electricity outages continues. This situation will remain under review as circumstances relating to electricity supply change.
The cost of the standby generator will be met out of an increase in Blanket's existing US$1.25 million debt facility which is in the process of being finalized.
Further information regarding Caledonia's exploration activities and operations along with its latest financials may be found at
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