ST HELIER: Caledonia Mining Corporation has completed the purchase of an additional 15 percent shareholding in Blanket Mine for $16.667 million.
On November 6, 2018, Caledonia announced it had entered into a legally binding agreement with Fremiro Investments (Private) Limited to purchase Fremiro’s 15 percent shareholding in Blanket Mine.
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 Mine is 64 percent and Fremiro holds approximately 6.3 percent 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.”
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