Caledonia Mining Ups Stake in Zimbabwe’s Blanket Gold Mine

SEATTLE (Scrap Monster): Canadian Caledonia Mining has purchased additional 15% stake in Blanket Gold Mine in Zimbabwe. The transaction was first announced in the month of November 2018.

Caledonia Mining and Fremiro Investments had signed a memorandum of understanding in August 2018 towards acquisition of the latter’s 15% stake in the mine for $16.67 million. Later in November, the two parties signed a binding agreement. Further to completion of the deal, Caledonia Mining currently possess 64% interest in the mine, whereas Fremiro owns 6.3% of Caledonia’s issued share capital. The remaining 36% is owned by local Zimbabwean shareholders.

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As per sources, Caledonia is believed to have cancelled a loan between itself and Fremiro Investments and issued 727,677 new Caledonia shares to Fremiro.

Steve Curtis, CEO, Caledonia Mining expressed pleasure on concluding the transaction following approvals by various Zimbabwean regulatory authorities. He thanked Fremiro for the support and expressed confidence that it will continue to support Caledonia’s business going forward.

Blanket Mine, which operates at a depth of around 750 metres below surface, had produced 55,000 ounces of gold in 2019.