Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) has announced plans to raise approximately £8.1mln (US$10mln) through the placing of new common shares at a price of 1,115p per share as part of an accelerated bookbuilding process being conducted in the UK and South Africa.
The proposed fundraising, at a 3% weighted discount against the trailing 30 days, will allow Caledonia to undertake new exploration activities and expand its existing gold mining operations in Zimbabwe.
In addition, IH Securities is undertaking on behalf of Caledonia a placing in Zimbabwe of Zimbabwe depositary receipts to raise approximately £2.4mln (US$3mln) at the same placing price. This will allow investors local to the company's operations the opportunity to participate.
The placing was disclosed in tandem with Caledonia’s full-year financial results, which showed gross revenues of US$142mln (£116mln) and EBITDA of US$50.4mln (£41mln).
During the fourth quarter, Caledonia completed the acquisition of a business owning the mining lease for Motapa, a property contiguous to the Bilboes gold project. The company also completed the acquisition of the Bilboes gold project in January 2023.
Caledonia has set gold production guidance for 2023 between 87,500 and 97,000 ounces, comprising 75,000-80,000 ounces from Blanket Mine and 12,500-17,000 from the oxide operation at Bilboes.
The bookbuild has opened with immediate effect and the number of shares to be issued pursuant to the placing will be agreed on by the joint bookrunners and the company following the close of the bookbuild.
Cenkos Securities, Liberum Capital and The Standard Bank of South Africa are managing the placing.