Caledonia to acquire Bilboes gold project in Zim

Caledonia Mining has signed an agreement to purchase Bilboes Gold, the parent company which owns the Bilboes gold project in Zimbabwe, for more than 5,1 million Caledonia shares representing about 28.5% of the company's fully diluted equity.
Based on 20 July's closing share price on New York Stock Exchange of $10.40 per share, the value of the new shares that will be issued as consideration is currently $53,2 million. 
"We are delighted to have signed an agreement for the purchase of Bilboes, the premier gold development project in Zimbabwe, and indeed one of the best gold development projects in Africa,” said Caledonia chief executive Mark Learmonth.
“This is a transformational asset for Caledonia, as we embark on the next step in our journey to become a multi-asset, mid-tier gold producer.”
He said they believe that Bilboes could produce three times the current 64% attributable share of gold production from Blanket, resulting in production from the enlarged Caledonia group being potentially four times its current size.
Caledonia’s Blanket mine produced 38,606 ounces of gold in the first half of 2022, about 29% more than the 29,907 ounces produced in the first half of 2021.
It is targeting to produce between 73,000 and 80,000 ounces this year.
A feasibility study of Bilboes showed potential for an open-pit gold mine producing an average of 168,000 ounces per year over a 10-year life of mine.
Bilboes is a large, high grade gold deposit located approximately 75 km north of Bulawayo. 


Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished