BY NOKUTHABA DLAMINI
Giant gold miner, Caledonia Mining Corporation (CMC), says it will increase a planned capital raising because of an overwhelming response to its listing on the Victoria Falls Stock Exchange (VFEX).
Caledonia said it will now raise US$7.96 million from the issue of approximately 630 000 new shares at an offer price of US$12.64 per depositary receipt.
The proceeds of the offer would be used for general corporate purposes in Zimbabwe, the company said.
Steve Curtis, the Caledonia chief executive officer, said the capital raising will attract more investors.
“The support from Zimbabwe investors has been extremely encouraging and reinforces our belief that this listing is an important milestone, welcoming new shareholders, with a mutual desire for investment in Zimbabwe and who have not, until now, been able to participate in Caledonia’s growth journey,” Curtis said.
“The VFEX listing will also enable Caledonia to progress with its next phase of development.
“The access to 100 percent US dollar revenue for incremental gold sales will assist Blanket, and any other new mine Caledonia develop, and will attract investors who are confident that Zimbabwe is a competitive investment environment capable of delivering attractive returns.”
Curtis said the VFEX listing highlighted the company’ s continued commitment to Zimbabwe.
” We are excited about this and the next stage, and I would like to thank everybody for their continued support,” he added.
Caledonia said as announced on July 8, 2021, one of the benefits of a listing of depositary receipts representing the ompany’s shares on the VFEX was an improvement in the proportion of the revenues received in US dollars for gold produced at the company’s majority owned Blanket Mine.
“The company looks forward to benefitting from this development going forward,” Curtis said.
“The admission of new shares, listing and dealings are expected to occur on or about December 2, 2021.”
Caledonia will announce the exact number of new shares, and depositary receipts, to be issued once subscription monies have been deposited and formalities have been completed in the next few days.
“Once the securities are issued, the company’s depositary in Zimbabwe will liaise with the VFEX to have the depositary receipts admitted to electronic trading in Zimbabwe and dealings will commence,” it said.