Caledonia Mining Corporation PLC (AIM:CMCL, NYSE-A:CMCL) has announced the sale of a solar plant in Zimbabwe for US$22.35 million (£16.72 million).
CrossBoundary Energy Holdings (CBE) will take over subsidiary Caledonia Mining Services Ltd, which operates the 12.2 megawatt plant, the company said Tuesday.
Having built the solar plant for US$14.3 million, Caledonia said the profit from its sale would be realised at a key moment in the company’s growth trajectory, with this set to be reinvested in other gold mining and exploration projects.
An exclusive offtake agreement will also see the site continue to supply renewable power to Caledonia’s Blanket Mine in Zimbabwe, ensuring a fifth of its electricity requirement.
“Whilst the sale will generate an immediate profit for the company, more importantly, we have identified an experienced partner in CBE which brings vast expertise in delivering and running renewable energy projects,” chief executive Mark Learmonth commented.
Caledonia noted CBE planned to expand the solar plant, which opened in February 2023, to deliver further energy to the Blanket Mine.
Renewable energy solutions would be considered at its other developments, Caledonia said, with the Blanket Mine site having significantly reduced the need for diesel generators.