Caledonia Mining has concluded the sale of its Zimbabwean subsidiary, Caledonia Mining Services (CMS) to CrossBoundary Energy for a pre-tax consideration of $22.35 million payable in cash.
CMS owns and operates the 12.2MWac solar plant that supplies power to Blanket Mine.
It said that, under the terms of the sale, the solar plant will continue to provide Blanket Mine with power under an exclusive power purchase agreement, ensuring a reliable renewable energy source for the mine.
The construction of the solar plant was initially financed by a registered offering of Caledonia's shares in the United States in 2020, which raised $13 million through the issue of 597,963 shares.
Since its commissioning in February 2023, the solar plant has generated over 57,722MWh of power.
“We are pleased to have completed the sale of the solar plant, strengthening our cash position and enabling us to redeploy capital towards our core gold mining and expansion operations,” Caledonia chief executive Mark Learmonth said.
“By selling the plant for $22.35 million, Caledonia realises a profit on the $14.3 million construction cost. Importantly, we retain the exclusive energy off-take agreement, ensuring that approximately 20% of Blanket Mine's daily electricity needs continue to be met by renewable energy.”
CrossBoundary managing partner Matthew Tilleard said the acquisition of Blanket Mine's solar PV facility is part of its ongoing commitment to providing the sector with the best energy solutions.
“Through a power purchase agreement, Blanket Mine will continue utilising the benefits of distributed renewable power, whilst freeing up capital for its value-generating mining activities,” he said.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
Exclusive
Who will bear the cost? Paul Zimnisky weighs in on U.S. jewellery tariff impact
The United States jewellery industry is facing a complex balancing act as new tariffs on diamonds force wholesalers and retailers to decide whether to absorb costs, negotiate with overseas suppliers (particularly India), or pass them on to consumers...
14 april 2025
Thataitsile Moremedi: South Africa's State Diamond Trader providing market access, exposure for nascent manufacturers
Although it is challenging for previously disadvantaged individuals to enter the diamond industry due to the financial barriers, South Africa's State Diamond Trader is providing nascent entrepreneurs with exposure, market access, and other support...
31 march 2025
Dr M'zée Fula Ngenge: KP has failed to adapt to contemporary challenges
The United Nations-backed Kimberley Process (KP), established in 2003 to prevent conflict diamonds from entering the mainstream rough diamond market, has failed to adapt to contemporary challenges, such as state-sponsored violence and sophisticated...
17 march 2025
Valentin Skurlov: Over the past 25 years, Fabergé Researches have progressed to discussing the new approaches to studying Fabergé’s legacy
Valentin Skurlov is an Honorary Academician of the Russian Academy of Arts (St. Petersburg), art historian, professor, Scientific Secretary at the Fabergé Memorial Foundation, consulting researcher in the Fabergé’s masterpieces at the Russian...
03 march 2025
Valery Budny: In the current economy, domestic jewelry manufacturing continues thanks to new technologies introduced over the past two decades
In February, JUNWEX St. Petersburg 2025 International Jewelry Industry Forum, one of the most significant projects of the “Jewelry Russia” Unified Exhibition Program, was held in St. Petersburg. Valery Budny, Head of the Jewelry Russia Program and CEO...
25 february 2025
