Caledonia concludes sale of 12.2MWac solar plant in Zim

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