Caledonia Mining Corporation delighted with oversubscribed placing

Caledonia Mining Corporation

Caledonia Mining Corporation Plc (LON:CMCL) was today delighted to announce that in respect of its Victoria Falls Stock Exchange (“VFEX”) listing, due to extremely positive Zimbabwe investor response, Caledonia has decided to raise more funds than originally anticipated and therefore to issue more shares.

At the offer price of US$12.64 per depositary receipt, Caledonia expects to issue up to approximately 630,000 new shares, raising approximately $7.96million (before expenses).  The proceeds of the offer will be used for general corporate purposes in Zimbabwe.

As announced on July 8, 2021 one of the benefits of a listing of depositary receipts representing the Company’s shares on the Victoria Falls Stock Exchange (“VFEX”) in Zimbabwe is an improvement in the proportion of the revenues received in US dollars for gold produced at the Company’s majority owned Blanket Mine. The Company looks forward to benefitting from this development going forward.

The admission of new shares, listing and dealings are expected to occur on or about December 2, 2021.

Commenting on the fund raise and anticipated listing on the VFEX, Steve Curtis, Chief Executive Officer, said: 

“The support from Zimbabwe investors has been extremely encouraging and reinforces our belief that this listing is an important milestone, welcoming new shareholders, with a mutual desire for investment in Zimbabwe and who have not, until now, been able to participate in Caledonia’s growth journey.

“The VFEX listing will also enable Caledonia to progress with its next phase of development. The access to 100 per cent USD revenue for incremental gold sales will assist Blanket, and any other new mine Caledonia develops, and will attract investors who are confident that Zimbabwe is a competitive investment environment capable of delivering attractive returns.

“The anticipated listing highlights our continued commitment to Zimbabwe.  We are excited about this next stage, and I would like to thank everybody for their continued support.”

Caledonia Mining will announce the exact number of new shares, and depositary receipts, to be issued once subscription monies have been deposited and formalities have been completed in the next few days.  Once the securities are issued, the Company’s depositary in Zimbabwe will liaise with the VFEX to have the depositary receipts admitted to electronic trading in Zimbabwe and dealings will commence. The listing and dealings are expected to occur on or about December 2, 2021.

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