Caledonia Mining Corporation today announced a major development in its growth strategy in which it will issue $53.3m worth of shares – about 28.5% of its share capital – for the Bilboes gold project north of Bulawayo in Zimbabwe.
“This is a transformational asset for Caledonia, as we embark on the next step in our journey to become a multi-asset, mid-tier gold producer,” said Mark Learmouth, CEO of Caledonia Mining.
The 1.96 million oz prospect – from which there has been limited production of 288,000 ounces since 1989 – could produce an estimated 168,000 oz/year in gold over a 10-year life of mine, the company estimated. This is a multiple of the 80,000 oz/year in production Caledonia currently mines from its 64%-owned Blanket mine, its only operating mine.
Caledonia Mining Corporation plc (LON:CMCL) is a profitable cash generative gold producer with a strong growth profile, Caledonia’s primary asset is the Blanket Mine in Zimbabwe.