Exploration and development company Caledonia Mining has signed a memorandum of understanding with Fremiro Investments to buy Fremiro’s 15% shareholding in the Blanket gold mine, in Zimbabwe, for $16.6-million.
Caledonia already owns 49% of the Blanket mine and the transaction will increase its interest in the mine to 64%.
Fremiro, meanwhile, will gain a 6.4% shareholding in Caledonia.
“We are very pleased to increase our shareholding in Blanket to a majority stake. Blanket mine has been an excellent investment for Caledonia since we originally invested in Zimbabwe in 2006 and we are delighted to be able to increase our shareholding in this outstanding asset," commented Caledonia CEO Steve Curtis.