VICTORIA Falls Stock Exchange-listed Caledonia Mining Corporation raised about US$5,825 million before expenses, well above its original goal, thanks to the tremendous support the placement got from both new and existing institutional investors.
The placement, undertaken by Inter Horizon Securities, sought to raise approximately US$3 million in Zimbabwe.
“The Zimbabwe placing received strong support from new and existing institutional investors. A total of 423 951 Zimbabwe Depositary Receipts (ZDRs) have been placed at the placing price of US$13,74 each,” the mining firm said in a shareholder update.
Caledonia chief executive officer, Mark Learmonth said: “I am very pleased to see such strong demand from new and existing institutional investors in Zimbabwe such as Zimbabwe’s Mining Industry Pension Fund which subscribed for a significant amount of the Zimbabwe placing. Their support will help us accelerate our growth plans in Zimbabwe.”
Net proceeds of the fundraise will be used to strengthen its balance sheet and provide working capital flexibility to accelerate planned work at the three new gold projects being undertaken in Zimbabwe.
“The net proceeds of the fundraise, together with the company’s existing cash reserves and the future cash to be generated from its ownership of the producing and cash generative Blanket Mine and from the Bilboes oxide operation, will strengthen the company’s balance sheet and provide the company with working capital flexibility to accelerate planned work at the three new gold projects it is currently undertaking in Zimbabwe,” it said.
A total of 781 749 placing shares were admitted to trading on London Stock Exchange on March 30, 2023, following a placing with domestic and international institutional and sophisticated investors at the placing price by Cenkos, Liberum, and Standard Bank acting as joint bookrunners in relation to the placing.
Therefore, in total including the aforementioned ZDRs, a total of 1 205 700 common shares have been placed in the form of depositary interests and ZDRs and the fundraise has raised in total approximately US$16,566 million before expenses.
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Further to the announcement by Caledonia on January 6, 2023, relating to the company’s acquisition of Bilboes Gold Limited, the firm announces that it has instructed the issue of a further 256 152 shares.
Under the transaction, 5% of the total consideration shares, being the deferred shares, were retained by Caledonia in order that adjustments to the purchase price could be calculated after completion to account for any extraordinary liabilities incurred.
