Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) said it has inked an ‘at the market’ (ATM) deal with Cantor Fitzgerald that could see up to US$30mln shares sold on the company’s behalf.
The shares would be sold in the United States, under the company’s NYSE America listing, and would be sold at market prices, Caledonia said in a statement.
The Zimbabwe gold miner noted that it expects to use any net proceeds from the share sales for investment in the development of its Bilboes sulphide project.
Some volume of the ATM shares may be transacted in London, indirectly, as the company has applied for a block admission of up to 2mln depositary interests representing the same volume of shares.
It comes after the company on Monday said it was confident it will hit its production guidance this year despite encountering issues at its main operation, the historic Blanket Mine in Zimbabwe.
"The first quarter of 2023 presented several operational challenges at Blanket which resulted in lower production and higher costs,” said Caledonia CEO Mark Learmonth. “We are confident these issues have been identified and addressed, and we reiterate our production guidance for Blanket of between 75,000 and 80,000 ounces of gold.
First-quarter results also reflected the cost of putting into production the Bilboes gold operation, 75 kilometres north of Bulawayo.