viewCaledonia Mining Corporation PLC

Caledonia Mining associate disposes of bonds

The US$3.2mln worth of bills were issued to the Blanket Mine in 2015

Picture of gold and dollars
Bonds were worth US$3.2mln

Caledonia Mining Corporation PLC’s (LON:CMCL, TSE:CAL) 49% gold mine subsidiary has sold US$3.2mln worth of  Zimbabwe government bonds.

The bills were issued to the Blanket Mine in 2015 and replaced the Special Tradeable Gold Bonds issued in 2009. The bonds were issued as part consideration for gold sales that were made by Blanket in 2008.

Gross sales proceeds will be subject to Zimbabwean income tax at 25.75%.

Steve Curtis, Caledonia's chief executive, said: "The Bills that were issued to Blanket Mine, and that have now been sold, date back to the commercial environment which prevailed in Zimbabwe in 2008. 

"Blanket Mine has sold all of its production to the government-owned refinery in Zimbabwe since January 2014, and it has always received payment in full and on time.  The sale of the Bills is a continuation of the process to dispose of non-core assets."  

"The additional funds raised from the sale of the Treasury Bills disposes of a legacy asset and we expect it to help fund the continuing development of the Blanket mine," added broker SP Angel.

Meanwhile, chairman Leigh Wilson has agreed to buy back 75,200 shares that were sold in February and early March without his knowledge by his discretionary fund manager.

Wilson did not find out about the share sale, which amounted to all of his holding, until 13 May.

To add insult, the shares were sold in 63.24 US cents per share or around 43p, since when the price has risen to 68p as the gold price has risen and Caledonia's expansion plans have move forward.


-- add broker comment, detail --


Quick facts: Caledonia Mining Corporation PLC

Price: 1235 GBX

Market: AIM
Market Cap: £142.22 m

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Caledonia Mining Corporation PLC named herein, including the promotion by the Company of Caledonia Mining Corporation PLC in any Content on the...



Caledonia Mining's Blanket Mine 'a solid performer' despite challenging quarter

Steve Curtis, chief executive of Caledonia Mining Corporation PLC (LON:CMCL, TSX:CAL), tells Proactive's Andrew Scott gold output during the three months to the end of June was marginally higher than the first quarter of 2018, in line with expectations. The Zimbabwe-focused gold miner...

on 08/10/2018

2 min read