LONDON, UK: Caledonia Mining Corporation Plc (Caledonia) has started directly selling gold produced from its Blanket Mine to a refiner outside Zimbabwe.
The company had been looking at various avenues to achieve direct export of its gold since listing on the Victoria Falls Stock Exchange and completing the Bilboes acquisition. However, unrefined gold will still be processed at Fidelity Gold Refinery (Private) Limited (FGR) on a toll-treatment basis.
FGR is a subsidiary of the Reserve Bank of Zimbabwe (RBZ) and holds a gold dealing license. The exportation of the refined gold is facilitated by FGR, and the final refining process is conducted by a foreign refinery outside Zimbabwe before the gold is sold on behalf of Caledonia.
The company receives the proceeds of gold sales directly into its bank account in Zimbabwe within a few days of delivery to the final refinery.
The new arrangement in respect of production from Blanket Mine is compliant with the current requirements to pay a 5% royalty, and Blanket will continue to receive 75% of its revenues in US dollars and the balance in local currency.
Caledonia’s CEO, Mark Learmonth, called the new arrangement a significant milestone for the company and highlighted that it should make it easier for Caledonia to arrange debt facilities with funders outside Zimbabwe to support the construction of new mines in Bilboes, Motapa, and Maligreen.
Caledonia Mining has purchased Motapa Mining Company UK Limited
Caledonia Mining buys Bilboes Gold Limited in a share exchange deal