Dual-listed Caledonia Mining has bought an additional 15% shareholding in the Blanket gold mine, in Zimbabwe, from Zimbabwean company Fremiro Investments, taking its overall shareholding in the mine to 64%.
This marks the completion of a transaction first announced in November last year, following approvals by various Zimbabwean regulatory authorities.
Fremiro initially acquired its shareholding in Blanket when Caledonia implemented transactions in 2012 to comply with the Zimbabwean Indigenisation and Economic Empowerment Act.
As part of the transactions, Caledonia sold 41% of the mine to Zimbabwean shareholders.
In March 2018, the Act was amended to remove the 51% indigenisation requirement for gold mining businesses; shortly thereafter, Caledonia and Fremiro agreed a transaction whereby Caledonia would buy back Fremiro's shareholding in Blanket.
In exchange for Fremiro’s 15% stake in the Blanket mine, Caledonia cancelled a loan between itself and Fremiro and issued 727 266 new shares in Caledonia to Fremiro.
Fremiro will now hold about 6.3% of Caledonia's enlarged issued share capital.
The transaction is valued at about $16.67-million.
“I would like to thank Fremiro for its support as a shareholder in Blanket during the last seven years and am confident that Fremiro, now as a significant shareholder in the company, will continue to be supportive of Caledonia's business going forward,” says Caledonia CEO Steve Curtis.