Caledonia to raise US$50m for Bilboes gold project
CALEDONIA Mining Corporation, which intends to become a multi-asset gold producer in Zimbabwe, has entered into an agreement with Cantor Fitzgerald & Co to sell up to US$50 million worth of shares.
The mining group whose local assets include its flagship, Blanket Mine in Gwanda, Maligreen Goldfields and Glen Hulme projects in Gweru said the funds from the transaction will be used to develop its Bilboes gold project in Bubi, Matabeleland North Province.
“The company announces that it has entered into an At the Market (ATM) sales agreement with Cantor pursuant to which the company may, at its discretion from time to time, sell up to US$50 million worth of shares.
“Caledonia expects to use the amount of any net proceeds from the sales for investment in the development of the Bilboes sulphide project,” it said.
In 2022, Caledonia acquired the Bilboes for US$53,3 million from businessman Mr Victor Gapare.
The mining group, which is listed on the Victoria Falls Stock Exchange has previously said the findings of a Preliminary Economic Assessment (PEA) show Bilboes holds huge potential to become a transformative asset and Zimbabwe’s biggest gold mining operation with production potential of 150 000 ounces annually.
The PEA confirms the results of a feasibility study carried out by the previous owners, which detailed a robust open-pit project.
Meanwhile, in the nine months to September last year — gold production at Blanket Mine was 56 815 ounces (oz) up from 55 244 oz in the corresponding period in 2023.
Caledonia, which is yet to release the 2024 production update for Blanket Mine projects between 74 000 and 78 000 ounces of gold at the Gwanda-based mine.
Gold is Zimbabwe’s biggest single export commodity whose output reached a record high of 36,4 tonnes last year, reflecting a 21,2 percent increase from 30,1 tonnes in 2023.
Last year, the artisanal and small-scale mining sector delivered 23,7 tonnes while primary producers or the large-scale miners produced 12,7 tonnes.
-herald
