By Business Reporter
HARARE – (Mining Index) – Caledonia Mining Corporation has announced its acquisition of 15 percent Fremiro Investment shareholding in Blanket Gold Mine at a cost of US$16.667 million is expected to be completed soon.
This means Caledonia will hold 64 percent of Blanket Gold Mine, making it the biggest shareholder.
On August 24, 2018 Caledonia Mining Corporation entered into an agreement with Fremiro Investments with the intention to purchase Fremiro’s 15 percent shareholding in Blanket Gold Mine.
“Caledonia has agreed to purchase Fremiro’s 15% shareholding in Blanket for a gross consideration of $16.667 million to be settled through the cancellation of the loan between the two entities which stood at $11.467 million as at June 30, 2018; and the issue of 727,266 new shares in Caledonia at an issue price of $7.15 per share, being the closing price on the NYSE American at August 17, 2018.”
“On completion of the transaction, Caledonia will have a 64% shareholding in Blanket and Fremiro will hold 6.42% of Caledonia’s diluted equity,” said Caledonia.
Caledonia entered into a legally binding sale agreement with Fremiro Investments, reflecting terms of the agreement following the announcement in August.
“The conditions to completion of the purchase include, amongst other things, approvals from various Zimbabwean regulatory authorities. Caledonia will make an announcement about completion of the transaction in due course,” said Caledonia. ENDS//