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LocalNews

Caledonia plans to list on Victoria Falls Stock Exchange

By Business Reporter – Wednesday 14 October 2020

HARARE (Mining Index) – TORONTO-based gold producer, Caledonia Mining Corporation is considering listing on the Victoria Fall Stock Exchange (VFEX), Bloomberg reported yesterday.

The Canadian-based mineral exploration and development company holds 64 percent in Blanket Gold Mine, making it the biggest shareholder.

VFEX was this year issued with a trading licence by the Securities and Exchange Commission of Zimbabwe to operate a securities exchange targeting foreign investors and global capital markets especially the mining industry.

VFEX is finalising the listing and membership requirements, setting up of the trading and depository systems as well as modalities on the clearing and settlement of transactions.

Situated in the resort town of Victoria Falls, the foreign currency-denominated bourse is not only expected to list local and foreign companies, but also to attract foreign direct investment (FDI) into the country as part of government’s plan to turn Victoria Falls into an Offshore Financial Centre (OFC).

The new stock exchange will operate through the Zimbabwe Special Economic Zones Authority were it would enjoy some incentives, crucial in attracting investment,  including a waiver on capital gains tax and provide political-risk cover.

VFEX is expected to become Zimbabwe’s second stock market after the Zimbabwe Stock Exchange (ZSE).

In October 2018, Caledonia projected its Blanket Mine was targeting to increase gold output to 80 000 ounces by 2021 following a US$70 million investment fund from its internal cash generation and existing cash resources. ENDS// www.miningndex.co.zw

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