Caledonia to buy one of Zimbabwe’s largest gold-mining projects

Jersey-based group will buy Bilboes Gold for about $53.3 million in shares, plus a royalty on revenues.
Image: Carla Gottgens/Bloomberg

Caledonia Mining Corp. has agreed to buy one of Zimbabwe’s biggest gold mining projects as it seeks to expand in the southern African country.

Jersey-based Caledonia will buy Bilboes Gold for about $53.3 million in shares, plus a royalty on revenues, it said in a statement on Thursday. The purchase could make Caledonia Zimbabwe’s biggest gold producer, with the potential to more than double its annual output to over 200 000 ounces.

“We are delighted to have signed an agreement for the purchase of Bilboes, the premier gold development project in Zimbabwe, and indeed one of the best gold development projects in Africa,” Caledonia Chief Executive Officer Mark Learmonth said in the statement.

Bilboes, which owns the Isabella-McCays-Bubi mines in northwest Zimbabwe, can potentially produce about 168 000 ounces of gold, Caledonia said. The operations have been mothballed as the company’s owners searched for new investors and Caledonia will conduct further studies to determine the “most judicious way” to exploit the deposit, it said.

Caledonia, which has Cape Town-based fund manager Allan Gray as one of its biggest shareholder, already operates the Blanket mine in the southwest of Zimbabwe.

© 2022 Bloomberg

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

SEARCH COMPANIES
Enter company name or share code:

ECONOMIC DATA  

  CPIThe Consumer Price Index (CPI) measures monthly changes in prices for a range of consumer products Jul 2022 7.40%
  CPI ex OERThe Consumer Price Index excluding Owners’ Equivalent Rent (CPI ex OER) measures monthly changes in prices for a range of consumer products excluding Owners’ equivalent rent that measures changes in the cost of owner-occupied housing Jul 2022 8.10%
  RepoThe rate at which the Reserve Bank lends money to the country’s commercial banks and set by the Reserve Bank’s Monetary Policy Committee. Aug 2022 5.50%
  Prime lendingThe Prime Lending Rate is the rate of interest that commercial banks will charge their clients when issuing a loan (home loan or vehicle finance) Aug 2022 9.00%

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: