# Caledonia Mining Corporation appoints Voltalia as contractor for solar power project

- Link: https://www.directorstalkinterviews.com/caledonia-mining-corporation-appoints-voltalia-as-contractor-for-solar-power-project/412862883
- Published: 2020-10-07T07:37:17+01:00
- Author: Giles Arbor

**Caledonia Mining Corporation Plc** ([LON:CMCL](https://www.directorstalkinterviews.com/company/caledonia-mining-corporation/cmcl.l))
have followed on from its previous announcement regarding the raising of required
funds to invest in the construction of a solar power plant to supply electricity
to the Blanket Mine in Zimbabwe. Caledonia has said that it has appointed Voltalia
as the contractor for the project. 

Voltalia is an international renewable energy provider and is listed on the regulated
market of Euronext Paris.  It has considerable experience in the delivery of renewable
energy projects including the development, construction, operation and maintenance
of solar power plants.  Voltalia is already active notably in Burundi, Malawi and
South Africa. Caledonia looks forward to working closely with Voltalia to deliver
a successful project at the Blanket Mine which, on completion, is expected to provide
approximately 27% of the mine’s total electricity demand. This will significantly
reduce the risk to the mine of any further deterioration in the quality of grid 
power which would necessitate increased use of diesel generators (which are substantially
more expensive than grid power).  The plant will also reduce Blanket Mine’s environmental
footprint.

Caledonia Mining Corporation and Voltalia have agreed an initial design phase for
the project after which, subject to the conclusion of an Engineering, Procurement
and Construction contract, procurement and construction are expected to begin with
current indicated commissioning for the 12MW solar plant in the last quarter of 
2021.

As previously announced, Caledonia raised the funds required to construct the plant
by way of an at the market sales process on NYSE American conducted by Cantor Fitzgerald&
Co on its behalf.  Pursuant to the process, the Company issued 597,963 shares, representing
considerably fewer issued shares than the expected 800,000 that it had initially
applied to list.

The project is primarily intended to protect the Blanket Mine from any further deterioration
in the electricity supply situation. Whilst the project is therefore being done 
for largely defensive reasons, it is expected to yield a modest return to shareholders
after taking account of the dilutive effect of the equity issued to fund it.

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