VICTORIA Falls Stock Exchange-listed resources firm, Caledonia Mining Corporation yesterday said it has plans to restart an oxides operation at Bilboes Gold near Bulawayo.
Caledonia recently took over Bilboes Gold in a multimillion-dollar deal.
In a market update, Caledonia said the plan was to create a cash-generating operation within a period of six months.
Under the Bilboes takeover deal inked in July, the parties agreed on US$53,3 million.
Bilboes will be the second gold asset to be operated by Caledonia in Zimbabwe.
The firm already controls Blanket Mine in Gwanda, which is presently the country’s biggest gold producer.
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Bilboes is the holding company for a large, high-grade, open-puttable gold resource in Zimbabwe.
“The completion of the transaction is subject to several conditions, which we are currently working on, but once achieved we can prepare a feasibility study to identify the most judicious way to commercialise the project with regard to the availability of funding on acceptable terms.”
Formerly owned by Anglo American Corporation, Bilboes is a large, high-grade gold deposit located about 75km north of Bulawayo.
Bilboes Gold is owned by Toziyana Resources which controls 50% shareholding, Baker Steel Resources Trust (24%) and Infinite Treasure with 26% stake.
Upon successful completion of the transaction, Victor Gapare, a prominent Zimbabwean mining entrepreneur, who controls Toziyana Resources, will be appointed executive director of Caledonia.
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