Caledonia sells Blanket Mine solar power plant for US$22,35m

Caledonia Mining Corporation, the owner of gold producer, Blanket Mine in Gwanda, has sold its 12,2-megawatt solar power plant for US$22,35 million, unlocking a profit of US$14,3 million.

The sale, completed on April 11 to CrossBoundary Energy (CBE), strengthens Caledonia’s cash position and allows the company to redirect capital toward its core gold mining operations and strategic expansion in Zimbabwe.

CrossBoundary Energy, a prominent developer and operator of distributed renewable energy systems across Africa, acquired the plant under a transaction that includes an exclusive power purchase agreement with Blanket Mine.

CBE provides affordable, clean energy to businesses across the continent through power purchase and lease agreements.

In an update on Monday, Caledonia’s Chief Executive Officer, Mr Mark Learmonth, noted the dual benefit of the deal.

Mr Mark Learmonth, Caledonia CEO.

“By selling the plant for US$22,35 million, Caledonia realises a profit on the US$14,3 million construction cost. Importantly, we retain the exclusive energy off-take agreement, ensuring that approximately 20 percent of Blanket Mine’s daily electricity needs continue to be met by renewable energy.”

The construction of the solar plant was initially financed through a registered share offering in the United States in 2020, which raised US$13 million from the issuance of 597 963 shares.

Commissioned in February 2023 and connected to the Blanket Mine grid in November 2022, the plant has since generated a substantial amount of power.

The sale followed a competitive bidding process, overseen by Caledonia’s Zimbabwean financial advisors, IH Advisory.

A conditional sale agreement was signed with CBE in September 2024 as part of Caledonia’s broader strategy to streamline operations and concentrate on high-value gold production assets.

Mr Matthew Tilleard, Managing Partner at CrossBoundary Energy, said: “The acquisition of Blanket Mine’s solar PV facility is part of our continued commitment to supporting the mining sector with innovative 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.”

Despite the change in ownership, the solar facility will continue to supply Blanket Mine with electricity, reducing reliance on diesel generators and grid power.

Caledonia affirmed that renewable energy will remain integral to its operations, contributing to a more sustainable and cost-effective power supply.

The transaction aligns with Zimbabwe’s national strategy to increase domestic power generation and reduce energy imports, while also supporting the mining sector’s shift towards cleaner energy solutions.

Looking ahead, Caledonia has already announced plans to invest US$41,8 million in 2025 to expand its mining operations in Zimbabwe.

Of this, US$34.9 million will be allocated to Blanket Mine for ongoing expansion and modernisation projects. An additional US$5.8 million will support the development of the Bilboes and Motapa projects —strategic assets acquired as part of the company’s diversification beyond Blanket Mine.

These investment plans are underpinned by strong gold output from Blanket Mine, which produced 76 656 ounces in 2024, slightly exceeding the 75 416 ounces achieved in 2023 and meeting the company’s annual targets.

For 2025, Caledonia is forecasting production between 73 500 and 77 500 ounces, as it continues to consolidate its position as a multi-asset gold producer listed on the Victoria Falls Stock Exchange. -chroncile