Caledonia raises $5.8m in Zimbabwe

Caledonia Mining Corporation has reported the conclusion of a $5.8-million placement on the Victoria Falls Stock Exchange.
It said the placement received strong support from both new and current institutional investors, with a total of 423 951 Zimbabwe Depository Receipts (ZDRs) placed for $12.74 per ZDR.
Furthermore, on March 30, 781 749 putting shares were allowed to trade on the LSE's AIM, amounting to 1.2 million common shares placed in the form of depositary interests, ZDRs, and fundraising, totalling $16.5 million before expenditures.
The net proceeds of the campaign, along with Caledonia's existing cash reserves, have improved the balance sheet and given the company working capital flexibility to expedite planned work at three new sites.
Furthermore, after the announcement of Caledonia's acquisition of Bilboes Gold on January 6, the company has instructed the issuance of an additional 256 152 shares.
Caledonia kept 5% of the total consideration shares as deferred shares under the terms of the deal so that changes to the purchase price may be computed after completion to account for any extraordinary liabilities incurred.
The 256 152 depository interests, which represent the deferred shares, will be listed on Aim on or around April 14.
Caledonia now has 19.1 million shares in circulation, all of which have voting rights, following the issuance of deferred shares and ZDRs.
The Blanket mine in Zimbabwe is Caledonia's main asset.
It is also working on the Maligreen, Motapa, and Bilboes deposits.

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